Builders Risk vs. Dwelling Under Construction Coverage: What’s the Difference?

A dwelling-under-construction policy and builders risk can insure an unfinished home under different terms; the product name alone does not show which is broader. Compare the forms for the structure, materials, existing dwelling, occupancy, and project term. If you’re remodeling, ask explicitly whether the existing home is insured.

For a new house, confirm whether the proposed policy covers the structure as it is built, materials before installation, temporary storage, and periods when the site is unattended. For remodeling, ask separately about the existing dwelling. A specimen builders risk form excludes the structure being altered, while the CDI guide describes broader renovation use in its California summary.

Request the applicable form and endorsements for both options. Check the named insured, lender interest, replacement value, permitted occupancy, project term, deductibles, and the required transition to ordinary homeowners coverage at completion.