Coverage Built for the Project, Not Just the Finished Building

Construction and renovation projects carry risks that your existing homeowners or contractors policy isn't designed to cover. Builders risk insurance is a project-specific policy that protects a structure while it's being built or significantly renovated — covering the period when a building is most vulnerable and when a loss could stop a project in its tracks. At Taylor-Moore, we work with 14 carriers to find the right fit for your project, whether you're a contractor, a property owner, or both.

Personal Insurance Built Around What You Actually Own

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What Does Builders Risk Insurance Actually Cover?

Builders risk insurance covers a structure under construction or active renovation against direct physical loss — fire, wind, hail, theft of materials, and vandalism are among the most common covered causes. Coverage typically extends to the building itself, materials stored on-site or in transit, and temporary structures like scaffolding or fencing.

 

A few things builders risk does not cover are worth knowing upfront:

 

  • Contractor liability for third-party injuries or property damage (that's general liability)
  • Tools and equipment owned by the contractor (that's inland marine)
  • Flood damage, unless a flood endorsement is added
  • Completed portions of the structure once the project is finished and the building is occupied

 

The policy is time-limited by design — it's tied to the construction period, not the life of the building. Once the project wraps and coverage transitions to a permanent property policy, the builders risk policy ends.

Who Needs a Builders Risk Policy?

Both property owners and contractors can have a stake in builders risk coverage, and the answer to who buys it often depends on the contract.

 

Property owners undertaking a new home build or a major renovation — adding a second story, gutting and rebuilding a kitchen, converting a barn — are frequently the ones who purchase the policy. A standard homeowners policy is not written to cover a structure mid-construction, and the gap in coverage during a project can be significant.

 

Contractors working on a project they're responsible for delivering may also carry builders risk, particularly on larger commercial builds or when a contract requires it. In either case, it's worth a direct conversation to clarify who holds the policy and what it covers before the first nail goes in.

 

If you're a contractor in Vermont or New Hampshire, our contractors insurance page covers the liability and workers compensation side of the picture — builders risk is a separate layer that addresses the structure itself.

Real Projects That Builders Risk Covers

Abstract policy language doesn't tell you much. Here's how builders risk applies to the kinds of projects we see in Vermont and New Hampshire:

 

  • New home construction: A family purchases land in Orleans County and breaks ground on a new primary residence. Their homeowners policy doesn't attach until the home is complete and occupied. Builders risk covers the structure from the foundation up through the final inspection.
  • Major commercial renovation: A restaurant owner in Newport guts and rebuilds the kitchen and dining room while the business is temporarily closed. The existing commercial property policy covers the finished building — builders risk covers the renovation work in progress.
  • Barn conversion: A farm property owner converts a large barn into a rental unit. The structure is mid-transformation and doesn't fit cleanly under the farm property policy during construction. Builders risk fills that gap.
  • Addition or significant structural project: A contractor adds a full second story to an existing home. The scope of work is large enough that the homeowner's existing policy won't respond to a loss during construction.

 

If your project doesn't fit neatly into one of these examples, call us and we'll work through it with you.

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Common Questions About Personal Insurance

Common Questions About Builders Risk Insurance

  • Do I need builders risk insurance if I already have a homeowners policy?
    In most cases, yes. A standard homeowners policy is written for an occupied, completed dwelling — it's not designed to cover a structure actively under construction or major renovation. If your project is significant, a builders risk policy covers the gap between groundbreaking and the point where your homeowners policy can take over.
  • How long does a builders risk policy last?
    Builders risk policies are typically written for the duration of the project — commonly 3, 6, or 12 months, with the option to extend if a project runs long. The policy ends when construction is complete and the building is ready for occupancy or use.
  • Who purchases the builders risk policy — the property owner or the contractor?
    It varies by project and contract. On residential builds, the property owner often purchases the policy. On commercial projects, the general contractor may carry it. Contracts sometimes specify who is responsible. We can help you sort out who should hold the policy before the project starts.
  • Does builders risk cover theft of materials on the job site?
    Yes, theft of building materials stored on-site is a covered cause of loss under most builders risk policies. Coverage for materials in transit to the site can also be included. Note that contractor tools and equipment are a separate category — those are typically covered under an inland marine policy rather than builders risk.
  • Does builders risk insurance cover renovation projects or just new construction?
    Both. Builders risk insurance applies to new construction and to major renovation projects where an existing structure is being significantly altered or rebuilt. The scope of the renovation matters — a cosmetic refresh is different from a structural gut job — and we can help you determine whether your project warrants a builders risk policy.

Two Local Offices, Ready When You Need Us

We have staffed offices in Derby and Barton, and we serve homeowners across Northern Vermont and into New Hampshire. Whether you're insuring a home in Newport, a farmhouse outside Barton, or a property in Colebrook, we're a phone call away — not a chatbot.