Does Builders Risk Cover Earthquake?
It depends on the policy and location; earthquake coverage may be excluded, limited, or added by endorsement.
Oregon’s public builders risk clause specifies earthquake when the state requires it, which is a useful reminder that contract specifications can call for coverage beyond a base form. A broad “all risks” label does not remove exclusions stated in the contract. Earthquake wording may also address earth movement, aftershocks, resulting fire, or a separate percentage deductible. Ask for the actual endorsement and the deductible calculation basis. Verify that the insured value covers the project and that earthquake coverage applies at the jobsite and any scheduled temporary locations. If the building is later insured as an operating property, its permanent commercial property policy may also need earthquake protection; the builders risk option may not carry forward after completion. Request the endorsement showing covered locations, annual aggregate, deductible base, and treatment of fire or other damage after shaking, and compare those terms with any lender or construction-contract requirement.
Related Coverage
Sources
- Builders Risk Coverage Form. Insurance Services Office, Inc.; hosted by Touchpoint Markets; IH 00 70 05 17, A.1.c and A.2 pp. 1–2; A.3 and A.4 pp. 2–5; A.5 and A.6 pp. 5–8; B.2–3 pp. 10–11; C–E pp. 12–13; copyright 2017, illustrative specimen. Accessed 2026-09-25.
- Insurance Clauses – Builders Risk. Oregon Department of Administrative Services; Builders Risk: Clause, When do they apply?, Notes, Additional Information; Builders Risk Installation Floater. Accessed 2026-09-25.



