Construction projects are significant investments that involve numerous risks, from theft and vandalism to weather-related damages. Builder’s risk insurance offers a safety net, ensuring your project is financially protected from unexpected events. At Riseson Insurance , we help contractors, builders, and property owners in Tempe , Phoenix , Scottsdale , Tucson , Gilbert, and Chandler secure the coverage they need for their construction ventures.

Builder’s risk insurance, also known as course of construction insurance, is a specialized type of property insurance designed to cover buildings or structures under construction. It protects against losses or damages that occur during the construction phase, helping to mitigate financial risks for everyone involved in the project.

This policy typically covers a wide range of risks, including:

Property Damage : Protection against damage to the structure under construction due to fire , wind, theft, vandalism, or lightning. Construction Materials: Coverage for materials, fixtures, and equipment stored on-site or in transit to the construction site. Temporary Structures: Protection for scaffolding, fencing, and other temporary structures used during construction. Soft Costs: Some policies cover indirect expenses like architectural fees, permits, or interest on loans if the project is delayed due to a covered loss. Debris Removal: Coverage for the cost of clearing debris after an incident.

While builder’s risk insurance provides robust protection, it doesn’t cover everything. Common exclusions include:

Employee Injuries: These are typically covered under workers' compensation insurance. Faulty Workmanship: Damage caused by poor workmanship or design flaws is not covered. Wear and Tear: Regular wear and tear or maintenance issues are excluded. Flood and Earthquake Damage: These risks often require separate policies or endorsements. Equipment Breakdown: Tools and machinery may need additional coverage under equipment insurance.

Builder’s risk insurance is essential for various stakeholders involved in construction projects, including:

Contractors: To protect their financial interest in the project and ensure continuity in case of unexpected events. Property Owners: To safeguard their investment during the construction process. Lenders: Many lenders require builder’s risk insurance before financing a construction project. Developers: To ensure all construction materials and work-in-progress are protected against potential risks.

Coverage typically begins when construction starts and ends when the project is completed, or the property is ready for use. Some policies may also include extensions for unexpected delays or added phases of construction.

Financial Protection : Construction projects are expensive, and unexpected events can result in significant financial losses without adequate coverage. Risk Mitigation: Construction sites are vulnerable to various risks, from severe weather to theft and vandalism. Compliance: Many lenders and project owners require builder’s risk insurance as part of their contractual agreements. Peace of Mind : Knowing your project is protected allows you to focus on delivering quality work without worrying about potential losses.

When selecting a builder’s risk policy, consider the following factors:

Project Value: Ensure the coverage amount matches the total project value, including labor, materials, and overhead. Policy Duration: Align the policy term with the expected construction timeline, including extensions for potential delays. Specific Risks: Identify risks specific to your project, such as location-related hazards like flooding or earthquakes. Additional Insureds: Include all stakeholders, such as contractors and subcontractors, to ensure comprehensive protection.

Don’t let unexpected events derail your construction project. Protect your investment with builder’s risk insurance from Riseson Insurance.

Call us today at 602-460-5470 to discuss your builder’s risk coverage needs. Serving Tempe, Phoenix, Scottsdale, Tucson, Gilbert, and Chandler, we’ll help you find the right policy to keep your project moving forward with confidence.

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Choosing the Right Builder’s Risk Policy

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1. Property Damage : Protection against damage to the structure under construction due to fire , wind, theft, vandalism, or lightning.
2. Construction Materials: Coverage for materials, fixtures, and equipment stored on-site or in transit to the construction site.
3. Temporary Structures: Protection for scaffolding, fencing, and other temporary structures used during construction.
4. Soft Costs: Some policies cover indirect expenses like architectural fees, permits, or interest on loans if the project is delayed due to a covered loss.
5. Debris Removal: Coverage for the cost of clearing debris after an incident.

1. Employee Injuries: These are typically covered under workers' compensation insurance.
2. Faulty Workmanship: Damage caused by poor workmanship or design flaws is not covered.
3. Wear and Tear: Regular wear and tear or maintenance issues are excluded.
4. Flood and Earthquake Damage: These risks often require separate policies or endorsements.
5. Equipment Breakdown: Tools and machinery may need additional coverage under equipment insurance.

• Contractors: To protect their financial interest in the project and ensure continuity in case of unexpected events.
• Property Owners: To safeguard their investment during the construction process.
• Lenders: Many lenders require builder’s risk insurance before financing a construction project.
• Developers: To ensure all construction materials and work-in-progress are protected against potential risks.

1. Financial Protection : Construction projects are expensive, and unexpected events can result in significant financial losses without adequate coverage.
2. Risk Mitigation: Construction sites are vulnerable to various risks, from severe weather to theft and vandalism.
3. Compliance: Many lenders and project owners require builder’s risk insurance as part of their contractual agreements.
4. Peace of Mind : Knowing your project is protected allows you to focus on delivering quality work without worrying about potential losses.

1. Project Value: Ensure the coverage amount matches the total project value, including labor, materials, and overhead.
2. Policy Duration: Align the policy term with the expected construction timeline, including extensions for potential delays.
3. Specific Risks: Identify risks specific to your project, such as location-related hazards like flooding or earthquakes.
4. Additional Insureds: Include all stakeholders, such as contractors and subcontractors, to ensure comprehensive protection.