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You probably know Building Under Construction Insurance as Builder’s Risk Insurance. It is also called Course of Construction coverage. But, do you know how this specialized coverage works?  At Farmer Brown Insurance we rely on your satisfaction for our reputation. Hence, we want you to have the information you need so you get the most from your insurance investment.


Let’s talk about the things we think are helpful to know upfront.

1. Have your policy customized

Your business is unique and so is your project.  A Builder’s Risk policy is customized so that you get the exact coverage you need.  Accordingly, there is no cookie-cutter solution for building under construction insurance.


A policy might include coverage for theft of tools, equipment, and fixtures.  As well as vandalism could be covered, and damage from fire, floods or high winds.  A developer may even include soft costs like loss of rental income in the event of project delays.


Takeaway: Tailor your building under construction insurance policy for your project needs.


2. There are exclusions in a Builder’s Risk policy

Every insurance policy has exclusions. This will be policy specific but common exclusions include losses that you may occur due to illegal or criminal activity from within your company.  Another is the wear and tear of equipment, or loss due to mechanical failure.


Your policy clearly states your exclusions. Some of these are added by endorsement if it is something for which you need coverage. Speak with one of our agents for assistance with this.


Takeaway: Read your policy carefully and know what’s excluded.


3. A Builder’s Risk policy has a time limit

Builder’s Risk commences at the beginning of the building process. It ends on completion of construction and occupancy occurs.    If your project is running over, you can get an extension to your policy. 


You may have a large project with various buildings starting and ending at different times. Then, you can get a “reporting form” policy to accommodate this. Speak with one of our agents for a full explanation if this applies to you.


Takeaway: Make sure your policy dates are correct for your project.


4. Insure your project at the right value


Builder’s Risk is property replacement coverage.  Your coverage is valued at the cost to replace the building once complete.  If you insure it for an amount that is less than that, when you put in a claim you could be penalised with a co-insurance payment.  Your policy may not pay the full cost of your claim.


Takeaway:  Value your project at 100% of the replacement cost.


Best Building Under Construction Insurance

John Brown President Farmer Brown Insurance (888) 973 0016

John Brown – President

You don’t have to know everything about Builder’s Risk insurance. Our agents can talk you through line items and policy options, and answer any further questions you have.  We are experts in this specialized coverage and know the construction industry well.  Giving you the best advice and service is vital for our reputation.  A quick phone call is all that is needed to get started on your policy.  Call Farmer Brown Insurance on (888) 973-0016


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