HouseChalkBuilder's Risk Insurance
Builder's Risk Insurance is a specialized property insurance that covers the home and materials during construction against damage like fire, wind, or theft.
Why it matters
Standard homeowner's insurance rarely covers a home under major construction. If the half-built framing burns down, Builder's Risk is what pays to rebuild it.
Where people get this wrong
It is different from the builder's general liability insurance (which covers injuries and third-party property damage). You should clearly agree in the contract who is responsible for buying the Builder's Risk policy.
Real-world example
A storm blows the roof off before windows are installed, causing massive water damage inside. Builder's Risk covers the loss of materials and labor to get the project back on track.
Where this hits your build
This comes up early, before construction starts. It affects your contract, your budget, or both. Misunderstanding it can cost you money or leverage.
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