Does Builders Risk Cover Materials In Transit?
Sometimes—materials in transit may be covered if the builders risk policy or installation floater includes shipments; a jobsite limit alone does not establish transit protection.
Oregon’s state guidance describes installation floater coverage for property intended for installation while in transit, highlighting this as a location to verify. A jobsite limit may not follow goods on a truck, and ocean transit or third-party carrier custody can have separate rules. Check the transit territory, conveyance, limit per shipment, loading and unloading period, valuation, and who is the insured while materials are being transported. The carrier hauling the load may have limited cargo liability, which is not the same as first-party insurance for the full shipment value. Ask whether the builders risk or installation floater follows each shipment from origin through unloading, and who bears the risk in the sales or construction contract. Confirm territory, conveyance, maximum shipment value, loading, and theft conditions.
