Does Builders Risk Cover Demolition?
Sometimes, if the policy includes demolition in the described project scope.
Before demolition, confirm whether the policy covers the existing structure, debris removal, temporary shoring, nearby property, and damage to the portion being removed. Oregon guidance discusses projects involving substantial alterations, while the ISO form’s defective-work and construction exclusions illustrate that not every loss arising during the work is insured. Check pollution and asbestos exclusions, neighboring-property liability, and whether the policy starts before demolition begins. Separate contractor liability and pollution coverage may address different exposures. The demolition contractor’s general liability policy may be relevant if operations damage a neighbor’s property, while pollution coverage may matter if hazardous material is disturbed. Those policies do not settle whether the building owner’s project property is covered.
