How to Purchase Builder's Risk Insurance

How to Purchase Builder's Risk Insurance. If you are a contractor, a homebuilder or even a do-it-yourself homeowner, builder's risk insurance can help protect your building site or renovations against loss or damage. Purchase this temporary insurance plan prior to beginning your work for full coverage.

Research different builder's risk insurance plans to determine what type of policy is right for you. This type of insurance is available to commercial developers, general contractors and homeowners.

Ask your current insurance agent if he offers builder's risk insurance. Find out if he can give you a reduced rate if you purchase the plan from him. If you already have at least one policy with him, such as auto or homeowners insurance, it is likely that he can make you some kind of deal.

Get price quotes from several different insurance providers. You will need to know the expected value of your project to be able to get an accurate estimate. Remember that this is not necessarily the real price you will pay for your insurance but just an idea of the cost.

Decide which builder's risk policy is appropriate for your project. Ask questions to fully understand what is covered before you agree to purchase the plan. Be certain that you know how to file a claim if needed or who to call for help.

Fill out application forms for the builder's risk insurance policy you have chosen. You will need to know your contractor's name, address and business license numbers, as well as information about the age and size of your home.

Make a copy of the application for yourself and forward the originals to the insurance company. You may be asked to send a deposit at that time.

Wait for your application to be reviewed and accepted. You will be responsible for paying the balance of your premium when you receive your copy of the insurance policy.

Renew your builder's risk insurance policy if you are not done with your building or renovations by the time the coverage expires. Usually builder's risk policies cover your work site and materials for a year.


  • Most large insurance companies have a "quick quote" finder on their websites. Take advantage of this tool in order to save time. After you have gathered some quotes, you can speak to agents in person.

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