Builder's Risk Insurance
From renovation work to ground-up construction for residential and commercial.
Fast, Flexible & All Online
It couldn't be easier to get your commercial and residential clients insured during construction. And you'll be able to easily transition your clients into their next policy when construction is done.
With flexible policy terms – 6 or 12 months – and the ability to extend, you'll get your clients covered with minimal effort and maximum protection.
The ease and flexibility you and your real estate clients need.
Agency & Direct Bill Options
what kind of Real Estate?
Our Builder's Risk Insurance program is designed for the following project types:
- New Construction: Protects your property when building from the ground up.
- Remodeler’s Risks: For both existing structures and improvements.
- Betterments Only: For condo owners or tenants that need coverage for improvements made in their unit.
$10M New Construction TIVs
$5M Remodeler's Risk TIV Limits
Residential & Commercial
Do it all Online.
With our online portal, you can submit, quote, and bind at your convenience. Everything you need is available at the click of a few buttons. And if you need support, we're here for that too.
Easy to transition.
You'll be able to easily transition your clients' Builder's Risk insurance coverage to the property's next phase, such as Vacant Buildings or Umbrella coverage. Designed for flexibility, you can also easily extend it.
All Property & Projects.
Builder's Risk Insurance provides coverage for New Construction, Remodeler's Risk, and Betterments Only for commercial, residential, and mixed-use.
Covers All Perils.
Unless it's specifically excluded, this Builder's Risk Insurance program covers all perils. It can also include commercial liability coverage.
- Competitive pricing and commission
- Low minimum premiums
- No volume commitments
- A.M. Best – A rated carrier
- Backed by a specialized Builder's Risk group, delivering the highest level of expertise and service
- One-step, easy online quoting and policy issuance
- A fast, cost-effective way to handle small accounts – rate and issue with two short screens of data entry
- Superior claims service
- New Construction: Protects your property when building from the ground up. TIV up to $10M for ground-up new construction projects
- Remodeler’s Risks: For both existing structures and improvements; TIV up to $5M for Remodeler’s
- Betterments Only: For condo owner or tenants that need coverage for improvements made in their unit; TIV up to $5M
- We can entertain prior starts in the event the project began within 30 days of application
- Vertical and horizontal additions are eligible
- Nationwide except in FL, HI, KY and Suffolk County, NY
SUBJECT TO POLICY COVERAGE AND WORDING.
- Buildings or Structures in the Course of Construction
- Scaffolding, Fencing, and Temporary Structures
- Fraud and Deceit – up to $50,000
- Soft Costs – Actual Loss Sustained, not to exceed 10% of the project’s completed value
- Limited Fungus – arising out of a covered peril, up to $15,000
- General Liability limits up to $1M/$2M available, provided that the owner is not the contractor/GC, subject to program guidelines; General Liability is not available in DE, FL, HI, KY, and NY
- Additional coverages listed in the policy
- Expediting Expenses up to $10,000
- Expenses to Re-erect Scaffolding up to $15,000
- Ordinance or Law – arising out of a covered peril listed in the policy – see policy for coverage limit
- Personal Property – up to $10,000
- Rewards – up to $10,000
- Temporary Storage Location – up to $25,000 – with higher limits available
- Sewer Backup – up to $10,000
- Transit – up to $15,000 – higher limits available
- Blueprints and Construction Documents – up to $20,000
- Trees, Shrubs, and Plants – located at the covered job site and being planted or installed as part of the construction project
The coverage information outlined here is a guideline only. Please refer to the issued policy for full terms, conditions, exclusions, and limitations. In the event of a conflict between this document and the issues policy, the policy will control.
- Insurance company subsidiaries or affiliates of AIG
- A rated paper
Building owners and general contractors look to Builder’s Risk insurance and Remodeler’s Risk insurance to protect a project during construction – from the ground up or a remodel – against physical damage due to fire, wind, theft, vandalism and other perils. It’s important for insurance brokers to ensure that the construction contract outlining the project and the coverage they secure work hand-in-hand. The construction contract provides the requirements for insurance coverage, along with indemnity provisions and waivers of subrogation. It also identifies who is to be insured under the policies, and, in some cases, limitations on liability. Following are several considerations to keep in mind when looking to place coverage:
- Carefully review how property is defined and what is actually covered. In addition to the building or structure itself, things like scaffolding, fencing and temporary structures are typically covered for direct physical loss.
- Review locations to be covered in addition to the construction site itself, such as property in transit (including whether all modes of transportation are covered) and property off-site.
- Construction theft is far from uncommon on a job site, so be sure to review the type of theft coverage available under the policy. Most policies typically provide coverage if the theft or vandalism is caused by a third party.
- Check how the policy will respond in the event of water damage due to sewer backup. Supplemental coverage is available to cover losses from water or waterborne material that backs up, overflows or is otherwise discharged through a sewer or drain, sump or septic tank; or from water or waterborne material below the surface of the ground. Review the sewer backup coverage limit and any exclusions that may apply.
- Look at how soft costs are treated in the policy, if they are included or can be added as an extension. Soft costs include the reasonable and necessary expenses related to the construction, erection or fabrication of a building/structure over and above those costs that would have been incurred had there been no direct physical loss. For example, this may include advertising and design fees, professional fees, lease administration expenses, and additional realty taxes and assessments occurred during the period of time that construction has been extended beyond the projected completed date. Review the amount of coverage available for soft costs.
- Look at what type of coverage extensions to the policy can be included such as debris removal, emergency removal and limited fungus coverage, and check the wording carefully for each of these extensions and how they apply.
- As Builder's Risk insurance and Remodeler’s insurance is temporary coverage, it’s important for clients to be clear on when coverage ends. This typically occurs when the policy expires or is cancelled, upon occupancy, or when the building is accepted by the other or put to its intended use. Coverage ends automatically, so it’s key to discuss securing Commercial Property insurance in advance of the expiration date.
Builder's Risk insurance and Remodeler’s policies are unique and require specific attention to make certain coverage is arranged correctly. It’s critical to review who and what is covered and the various provisions that exist so that an insured fully understands how the policy works.
It's easy. Just go to our online portal and get started. If you haven't registered as a broker, you'll need to do that first. And if you need any help, we're here.