facebook pixel
Call now 866-225-1950 Call now 888-819-1228 Call now 855-340-1099 Call now 833-234-8928 Get Quote >

Do you need Builder’s Risk Insurance for homeowners or Homeowner’s Insurance? 90% of property owners have some form of insurance. But there are key differences between Homeowners Insurance and Builder’s Risk Insurance.  In this article, let’s take a look at each individual policy. What they cover and the benefits to expect.

Builder’s Risk insurance for the homeowner 

Builders Risk insurance provides cover for; a new building project, remodeling, restructuring, and installation of permanent fixtures. The policy includes coverage for:


  • Natural disasters 


8% of all water damage can be attributed to weather. Builder’s Risk Insurance for homeowners covers damages caused by wind, floods or hail among others.

For example: An overnight storm could destroy your foundations. Your insurance agent will compensate you for the material and labor costs incurred during building.


  • Theft and vandalism


Theft of fixtures and materials within a construction site is common. Insurance compensates for stolen materials and reimburse you for damages.

For example: Vandals break into your construction site and rip apart the electronic wiring you had done during the day.


  • Builder’s Risk Insurance for homeowners covers fire damage


Many chemicals and materials used in construction are flammable. Repairing fire damage can set you back financially.

Let’s say some roofing materials catch fire and burn down the roof causing it to cave in.  You’re covered with your Builder’s Risk Insurance for homeowners.

Additional coverage 

In addition to the above, your coverage can include some policy extensions such as:

  • Debris removal and contamination clean up
  • Changes in building ordinance or Law
  • Profit and overhead costs loss
  • Loss during transportation
Homeowner Insurance 

Homeowner insurance is inadequate coverage for a building under construction. This includes a new building or renovations to an existing building.

However, this coverage is great for the homeowner.  It provides the following benefits:


  • Financial relief 


Homeowner’s Insurance will safeguard your property from hazards such as:

  • Vandalism
  • Fire
  • Severe weather
  • Theft of property

Your Homeowners Insurance will pay for repairs and replacement costs. It also covers valuables such as jewelry. So, if thieves steal all your electronics, your policy will replace your stolen property.


  • Fulfill lender requirements 


Lenders often insist that property be insured in case of fire, vandalism or severe weather.

For instance, if you have taken a loan against your house, the lender requires that your house is in top shape. Sadly, after a big storm there is flooding that causes water damage. Your policy will cover you for repairs.


  • Easy recovery 


Homeowners Insurance pay-outs allow families to make repairs or replace property quickly. It reduces stress and allows you to get back to your normal life. Your policy also covers temporary living arrangements for the homeowner if your home is uninhabitable. For example, if a fire burns down the house, and you have to stay at a hotel during renovation.


  • Protects from liability


While you strive to make your home as safe as you can, accidents still occur from time to time. If someone gets injured on your property, they can hold you liable. Let’s say a neighbor slips and falls on your deck. Your Homeowners Insurance will cover all the medical bills, legal fees and lost wages.

Builder’s Risk Insurance for homeowners is just a call away

As you can see, each policy plays a specific role. Builder’s Risk Insurance for homeowners is great if you are making changes to your property. Homeowners Insurance will protect you from any financial burden to already constructed property.

Now that you understand the differences between the two you need an insurer you can trust. To get in touch with Contractors Liability call 888-676-0923. We are here to help.