Who Pays for Builders Risk Insurance?
The contract may assign the premium to the owner or contractor; payment responsibility does not by itself establish who is insured under the policy.
The owner and contractor can agree how to allocate the cost of builders risk, but there is no single payer established by the coverage name. The construction contract may put the purchase and premium cost on the owner, general contractor, or another project party. The policy separately identifies insureds and the property or interests covered.
In the specimen ISO form, “you” refers to the named insured shown in the declarations. That illustrates why paying for coverage should not be confused with being insured. Contract language, policy endorsements, and the declarations should agree about which entities have an interest.
Before signing, check who must buy the policy, who reimburses the premium, how deductibles are shared, and whether taxes or broker fees are included. Compare those provisions with the quote’s named insureds, lender interests, limit, and effective dates. Ask for revised policy wording if the written insurance does not match the contract.
Related Coverage
Sources
- Glossary of Insurance Terms. National Association of Insurance Commissioners; Builders’ Risk Policies. Accessed 2026-09-25.
- Commercial Insurance Guide. California Department of Insurance; Form 700, revised June 14, 2024: Commercial Property > Coverage Forms and Endorsements > Builder’s Risk; Inland Marine; How Can I Purchase Commercial Insurance?; What Should I Expect from a Broker-Agent? Accessed 2026-09-25.
- Builders Risk Coverage Form. Insurance Services Office, Inc.; hosted by Touchpoint Markets; IH 00 70 05 17, copyright 2017 (illustrative specimen): A.1–3, printed pp. 1–2; B, printed pp. 9–11; C–E, printed p. 12. Accessed 2026-09-25.
