Builders Risk vs. Property Insurance: What’s the Difference?

Builders risk covers specified property during construction; “property insurance” is a broader category that can cover business property under different forms. The project policy may end at completion or occupancy, so map your current coverage through construction and into permanent property insurance to avoid a gap.

The categories can overlap in a policy package, but the policy forms set the actual scope. A specimen ISO builders risk form applies to a described project and can cease at completion, occupancy, acceptance, expiration, or another listed event. A separate property form may have its own construction, vacancy, and occupancy conditions.

Ask the broker to map the project from its current property coverage through construction and into permanent insurance. Compare the insured property, causes of loss, valuation, deductibles, existing structures, and transition dates. Do not assume the word “property” means the same form is appropriate at every project stage.