Builders Risk vs. Homeowners Insurance: What’s the Difference?
Check with your homeowners insurer before work starts, then coordinate any builders risk policy with the home policy.
Builders risk addresses a building project while work is underway. The NAIC glossary describes it as coverage for buildings in the course of construction. A homeowner should not assume an ordinary home policy automatically covers the same project, especially when the home is unoccupied, substantially altered, or not yet in normal use. The answer depends on the homeowners contract and insurer’s requirements.
For a renovation, check the existing homeowners policy before work begins. The specimen ISO builders risk form excludes the existing structure undergoing alterations, while the CDI guide says builders risk may be used for existing structures under renovation. That difference is a reason to identify the old structure and new work explicitly.
Ask the homeowner insurer whether coverage continues, what notice or endorsement is required, and how the policy treats contractors, vacant periods, and materials. Compare a separate builders risk option and coordinate its effective date with the permanent home policy.
Related Coverage
Sources
- Glossary of Insurance Terms. National Association of Insurance Commissioners; Builders’ Risk Policies. Accessed 2026-09-25.
- Commercial Insurance Guide. California Department of Insurance; Form 700, revised June 14, 2024: Commercial Property > Coverage Forms and Endorsements > Builder’s Risk; Inland Marine; How Can I Purchase Commercial Insurance?; What Should I Expect from a Broker-Agent? Accessed 2026-09-25.
- Builders Risk Coverage Form. Insurance Services Office, Inc.; hosted by Touchpoint Markets; IH 00 70 05 17, copyright 2017 (illustrative specimen): A.1–3, printed pp. 1–2; B, printed pp. 9–11; C–E, printed p. 12. Accessed 2026-09-25.



