Section 4.36 Builders’ Risk Insurance

• Library: Construction Law 2016 Supp

XI. (§4.36) Builders’ Risk Insurance

Builders’ risk insurance is first-party property insurance that protects a project from certain weather-related events and other occurrences during the course of its construction. Generally speaking, a construction contract provides that the general contractor has risk of loss regarding the project’s improvements until substantial or final completion, requires that builders’ risk insurance be purchased, or both. A builder’s risk policy is usually written to include as insureds the owner and general contractor, with limits normally being equal to the price of the prime agreement.

The most common...