Does Builders Risk Cover Houses?

NAIC describes builders risk as covering buildings in construction, and the Insurance Information Institute says homeowners undertaking a larger remodel may consider a builders risk or course-of-construction policy. Those descriptions do not establish terms for a particular home project. Clarify whether the owner, general contractor, or both have an insurable interest, and whether the existing home, materials, and temporary lodging costs are included. Check project value, occupancy, theft conditions, and the transition to a homeowners policy when construction ends. For a home renovation, the owner’s existing homeowners policy should be reviewed before work starts; the Insurance Information Institute specifically advises notifying the insurer about remodeling and considering builders risk for a larger project. Ask whether the house, contractor-supplied materials, and temporary living costs are covered, and confirm the home policy resumes or changes when construction is complete.