Commercial Property vs Builders Risk Insurance?

Commercial property covers a building you operate from and its contents; builders risk covers a building or project while it’s under construction or renovation.

Commercial property insures a location you’re operating from and what’s inside it; builders risk insures a building or project while it’s being built or renovated, including construction materials, until the work is finished. If you’re renovating a space you already occupy, your existing property policy may restrict coverage for the construction work, so you may need both.

Which one fits depends on what’s being built, who owns the work, and whether you keep operating in the building. Check project contracts for who must insure the work and when responsibility passes to the owner. Compare covered property, existing structures, materials in transit or storage, testing, soft costs, and occupancy limits. Builders risk doesn’t replace liability coverage.

Updated . Check your quote and policy wording to see how this answer applies to your coverage. See the editorial policy or contact Spot with a correction and supporting source.

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