Does Builders Risk Cover Soft Costs?

Oregon’s state guidance says soft-cost coverage should be endorsed and describes expenses that can result from a covered physical loss, such as financing interest, taxes, lease costs, and professional fees. That guidance also notes coverage differs among insurers. Soft costs are not the same as all lost revenue or every extra project expense. Review the trigger requiring covered physical damage, the listed expense categories, waiting period, indemnity period, sublimit, and whether costs must be incurred during a defined restoration period. A project’s lender, landlord, or tenant may bear financing or lease costs while work is delayed, but those contractual costs are not automatically insured. Match each expected expense to the endorsement’s list and time period, then verify the limit and waiting period. Ask whether architect fees, loan interest, taxes, lease renegotiation, and extra insurance premiums are individually covered or excluded.