Does Builders Risk Cover Fire?
Usually—fire damage to covered construction property is generally within builders risk coverage, subject to the policy’s exclusions, project limits, and any testing or hot-work conditions.
An illustrative ISO form covers direct physical loss to covered property unless excluded; it also contains specific provisions for fire and fire-extinguishing systems. The insured property, job location, construction stage, and limit all matter. Check whether the quote uses an open-peril or named-peril form, how it treats fire arising during testing or hot work, the fire-protection conditions, and whether debris removal is inside the stated limit. If fire spreads to an adjacent building, the builders risk schedule may not insure that neighbor’s property; liability coverage could be relevant depending on responsibility and policy terms. Ask whether the quote includes fire department charges, debris removal, and costs to meet current codes, since those extensions may have separate caps rather than adding unrestricted dollars to the project limit.
