Who Pays for Builders Risk Insurance?
The contract can assign the builders risk premium to the owner, contractor, or another party.
Payment does not determine who is insured, so compare the contract with the policy declarations and endorsements. 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.
