Downtown Portland, Oreogn

Builders Risk Insurance

Builder’s Risk Insurance is specialized insurance that’s intended to insure structures while they’re under construction or renovation.

Do you need Builders Risk Insurance?

Builders Risk insurance, which is also called Course of Construction coverage, is necessary for both commercial and residential construction projects.

This type of policy provides protection for final structure replacement cost value including the materials, fixtures, and appliances which are intended to become an integral part of the structure. It can also be used to cover specific projects, such as a new room addition, a deck, or a remodeled bathroom.

The following are common coverage areas that are frequently requested to be included within a Builders Risk Insurance policy:

This provides protection for property from loss while being transported to the job site.
This provides protection for property at a location where property that is to become part of the construction project described in the declarations is stored while waiting to be delivered to a job site.
“Soft Costs” are essentially extra expenses incurred as a result of a delay caused by a covered loss. Some of the more common soft costs are interest charges on project financing, realty taxes or other assessments, workers overtime, advertising and promotion, costs associated with lease renegotiations and accounting, legal, architectural, or engineering fees.
Ordinance & Law provides the following protections:


    • Coverage A: Loss of value of an undamaged portion of the existing property
    • Coverage B: Costs of demolition of the undamaged portion of the property
    • Coverage C: Increased expenses to:
      • Replace the property so as to comply with current building, zoning, or land use laws or ordinances.
      • Repair the damaged property so that it complies with current building, zoning, or land use laws and ordinances.
The peril of earth movement/earthquake is not an automatic coverage and must be requested.

Earthquake deductibles work differently than traditional property insurance policies as the deductible works as percentage rather than a dollar amount. Rebuilding the building after an earthquake you’re responsible for a % of the building’s replacement cost. Your responsibility at the time of loss would be a % of total values in respect of all interests at the location of the loss.

In the event of a total loss the cost of building materials and labor can fluctuate significantly from the start of a project through its completion. This provides increased costs related to changes in construction specifications following a covered peril. This would include cost of labor, materials or changes in construction specifications.
This protection covers debris removal and disposal costs.

This protection covers charges imposed by a fire department for their services in fighting a fire.

This protection covers reasonable and necessary expenses you incur to recharge or refill fire protective equipment which has been discharged under certain conditions.
This protection covers legally imposed expenses you’ll have to remove or extract pollutants from land or water when a fire or other covered cause of loss occurs at the project site.

This protection allows you to occupy the covered property during the course of construction.
This protection provides protection for additional costs you incur following a covered cause of loss to covered property and allow you to meet the contracted completion date of your construction project.

This protection extends coverage available to offsite trees, shrubs and plants, beyond those in storage or in transit. 
This protection extends coverage for the cost of research and reproduction of blueprints and other construction documents due to direct physical loss by a covered peril.
This protection provides coverage for direct physical loss by a covered peril to a construction trailer and contents
located at a job-site.
This protection provides coverage for direct physical loss to covered property caused by explosion, rupture, bursting, mechanical breakdown or electrical currents.
This protection provides coverage for reasonable and necessary costs relating to complying with “Green Certification” standards in the construction of a covered building or structure.
This protection covers the interest of your subcontractors and suppliers, while their covered property is at the job-site.
In the event of a covered delay, this protection covers the extra expenses incurred to establish operations at a replacement premises or temporary location, including certain relocation expenses.
This provides protection for individual loss payees, additional insureds or mortgagees.
Builder’s Risk Insurance is a property only policy and does not provide any Commercial General Liability protection.

Builders Risk Insurance policies are available as three-month, six-month, or 12-month plans. Most insurance companies will allow extensions for work not completed during the project.

Reach out to me when you’re considering Builders Risk Insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Builders Risk Insurance quotes from multiple insurance carriers so you can get the best possible rate.

As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.