Builders Risk vs. Property Insurance: What’s the Difference?
Builders risk covers property during construction; permanent property insurance covers the completed, occupied building under a different form and timeline.
Builders risk covers a described construction project, while permanent property insurance covers the completed building and business property under its own form. A builders risk policy can end at completion, occupancy, acceptance, expiration, or another stated event.
Compare the insured property, causes of loss, valuation, deductibles, existing structures, vacancy or occupancy conditions, and transition dates. Arrange permanent coverage to begin before the construction policy ends so the project does not fall into a gap.
