What Insurance Covers Construction Materials?

Builders risk insurance covers the materials that will become part of the building while the project is under way. Coverage applies at the jobsite, and the policy can extend to materials in temporary storage or on the way to the site, often with lower limits.

Contractors' own tools and equipment aren't building materials. Cover those with an inland marine equipment floater.

Before you buy, check that the project description and covered locations are right, what limits apply to storage and transit, and which causes of loss are excluded. Make sure the owner, contractor and any lender are all named as the contract requires.