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By: Vernon Williams

Owner of The BFIS

888-412-7630

Construction projects are intricate endeavors involving numerous stakeholders, substantial investments, and significant risks. Whether you're building a new structure or renovating an existing one in California, safeguarding your project from potential hazards is essential to its successful completion. 


One crucial aspect of risk management for construction projects is obtaining Builders Risk Insurance, also known as Course of Construction Insurance. This type of insurance provides coverage for damage or loss to buildings or structures during the construction phase.



We Have the Best Builders Risk Insurance for Construction Companies



At Brighton Financial and Insurance Services (BFIS), we understand the need for comprehensive Builders Risk Insurance. That’s why we have tailored our insurance products to meet the specific needs of construction companies in California. Our Builders Risk Insurance policy provides reliable coverage throughout the construction process, helping you protect your project from damages caused by accidents, fire, windstorms, vandalism, and more. Additionally, our policy covers materials stored off-site and can be tailored to fit your specific project size and budget. 


We also provide a variety of other insurance services, including general liability and property coverage for construction businesses. With our Builders Risk Insurance, you can rest assured that your construction project will be protected from potential losses and damages. 


Contact us today to learn more about our insurance services and how we can protect your business.

What is Builders Risk Insurance and How Does It Help Construction Companies?



Builders' Risk Insurance is a specialized form of property insurance designed to protect construction projects from a range of perils that can occur during the building phase. 


Builders Risk Insurance typically provides coverage for a specified period, usually ranging from three to 12 months, depending on the project's duration. It comes into effect once the construction project begins and ceases once the project is completed and ready for use or occupancy. Typical coverage details of builders' risk insurance include:


  • Property Damage: Builders Risk Insurance covers damage to the insured property resulting from covered perils. This includes the building under construction, the materials and equipment on-site, and, in some cases, temporary structures like scaffolding and fences.
  • Theft and Vandalism: Construction sites are often targets for theft and vandalism. Builders Risk Insurance provides coverage for losses arising from theft or acts of vandalism.
  • Fire and Lightning: Fires can be devastating for construction projects, potentially leading to significant financial losses. Builders' Risk Insurance protects against fire and lightning damage.
  • Weather-Related Damage: California is prone to various weather-related risks, including windstorms, hail, and heavy rain. Builders' Risk Insurance covers damage caused by these weather events.
  • Explosion: In the event of an explosion on the construction site, this insurance provides coverage for resulting damage to the insured property.

Who Needs Builders Risk Insurance?


Builders Risk Insurance is designed to cover the property used for a specific project, such as a construction or renovation. This type of insurance is essential for any business or individual involved in the building process, including:


  • Contractors 
  • Developers 
  • Architects 
  • Engineers 
  • Construction Companies 
  • Home Builders 
  • Realtors 
  • Property Managers 
  • General Contractors 
  • Building Owners 
  • Landlords 
  • Plumbers 
  • Electricians 
  • HVAC Technicians 
  • Painters 


Without this coverage, businesses and individuals involved in the construction process could be held financially liable for any damage that occurs during the project.

Common Exclusions in Builders Risk Insurance Policies


While builder's risk insurance provides comprehensive coverage, it's essential to be aware of common exclusions to avoid any surprises during a claim. Exclusions typically found in builders' risk insurance policies may include:


  • Earthquake and Flood: In California, where earthquakes and floods are prevalent, they are often excluded from standard builders' risk insurance policies. Separate coverage is required for these perils.
  • Employee Theft: Theft or dishonest acts committed by employees may be excluded from coverage. Businesses may opt to secure a separate employee theft insurance policy to address this risk.
  • War and Terrorism: Damage resulting from acts of war or terrorism is generally excluded from builders' risk insurance policies.
  • Design Defects: Builders' risk insurance is not intended to cover design flaws or errors. Professional liability insurance or errors and omissions (E&O) insurance is more appropriate for such concerns.
  • Faulty Workmanship: Builders' risk insurance does not typically cover losses resulting from poor workmanship or construction defects. Quality control measures and proper contractors' insurance are essential to address this aspect.
  • Settling, Cracking, and Shrinkage: In most cases, builders' risk insurance will not cover damage resulting from settling, cracking, or shrinkage. Such incidents are often due to design defects and can be addressed with professional liability insurance.


Navigating the complexities of insurance exclusions is vital to fully understanding your coverage's scope. Working with experienced insurance professionals, such as those at Brighton Financial and Insurance Services, ensures you obtain a policy that addresses your specific project needs while avoiding potential pitfalls.

What You Need to Get Builders Risk Insurance


Obtaining Builders Risk Insurance in California is a crucial part of any construction or renovation project. To obtain the necessary coverage, there are several steps that must be taken:


  • Access your needs - The first step is to assess your project and determine the type of coverage you need. This includes evaluating the size and scope of the project, taking into account materials used, labor costs, and any other relevant factors. 
  • Research various policies - Once you have an idea of the type of coverage you need, it’s time to research different insurance providers and compare available policies. This includes looking into the specific coverages offered, deductibles, and cost of premiums.
  • Request quotes - Now that you’ve done your research reach out to multiple insurers to request quotes on a Builders Risk Insurance policy. Ensure to provide detailed information about the project to receive an accurate quote.
  • Choose the best policy - After you have received all your quotes, it’s time to compare them and determine which policy is most suitable for your needs. Consider the coverage limits, deductibles, exclusions, and any other terms pertinent to the policy in order to find the best option.
  • Gather relevant documents - Once you’ve found a policy that meets your needs it’s time to gather the necessary documentation. This includes job contracts, invoices for materials and labor, and any other documents required by your chosen insurance provider.
  • Fill out application forms - Once you have chosen the policy that best fits your needs, it’s time to fill out the necessary application forms. Be sure to provide accurate information in order for the insurer to properly assess your project and determine if they are willing to offer coverage.
  • Submit required documents - Along with the completed application forms; some insurers may require additional documents such as property deeds, building permits, and other proof of ownership.
  • Review the policy - Once you receive the policy, make sure to carefully review it before signing. Notify the insurer of any discrepancies or missing information in order to ensure that your coverage is accurate and up-to-date. 


These steps will help you obtain the necessary Builders Risk Insurance for your project. However, it is important to remember that selecting the right coverage requires more than just looking at quotes and policy terms. 


It is also essential to take into consideration the experience of the insurer and their reputation in the industry. Working with an experienced and reliable insurer will ensure that you are getting quality protection for your construction project.

How Much Does Builders Risk Insurance Cost?


The cost of Builders Risk Insurance varies depending on the size and scope of the project, as well as factors such as location, materials used, labor, number of employees, deductibles, and any additional coverages included in the policy. On average, policies can range anywhere from as low as $39 per month to $375 per month, depending on your needs.


To determine the price of a policy, insurance agents will assess the value of all materials and equipment used on the job, as well as any applicable labor costs. This means that larger projects with more complex needs may require additional coverage and thus incur higher premiums. Additionally, when taking out a Builders Risk Insurance policy, you must also factor in deductibles which can vary greatly depending on the project.

Compare Builders Risk Insurance Quotes


Brighton Financial and Insurance Services (BFIS) is here to help you compare Builders Risk Insurance quotes to get coverage that meets your budget. Our experienced agents specialize in helping individuals and businesses find the right coverage for their needs at the best price. 


No matter your project, we can help you protect it against any potential risks that may arise during construction. With BFIS, you can get multiple online quotes in just minutes. We specialize in finding cost-effective policies that provide the necessary coverage to protect your project and ensure its success. 


Contact us today to start comparing quotes and take the first step toward protecting your construction project.

Common California Builders Risk Insurance Questions

See some common questions and answers below, or call us at 888-412-7630

  • Who needs Builder's Risk insurance in California?

    Builder's Risk protects the financial interests of both contractors and property owners during construction projects. Typically, the party responsible for obtaining the policy depends on the specific terms of the construction contract.

  • What types of risks does Builder's Risk cover?

    Builder's Risk offers comprehensive coverage against a wide range of potential perils, including fire, theft, vandalism, windstorms, hail, lightning, explosions, and specific natural disasters, depending on the policy terms. However, certain risks like earthquakes, floods, and war may require additional endorsements.

  • How does Builder's Risk differ from standard property insurance?

    Unlike standard property insurance which covers completed structures, Builder's Risk provides temporary coverage for buildings and structures under construction or renovation. It also covers materials, equipment, and temporary structures on the site, offering more extensive protection for the evolving project.

  • What are the factors that influence Builder's Risk premiums?

    Premiums for Builder's Risk policies are primarily determined by the project's estimated value, construction duration, location (seismic zones can affect rates), and the specific perils covered.

  • Can Builder's Risk policies be extended if the project timeline changes?

    Most Builder's Risk policies offer flexibility for extension periods to accommodate unforeseen delays. However, it's crucial to promptly communicate any schedule changes to your insurance provider to ensure seamless coverage continuity.

  • Where can I obtain Builder's Risk insurance in California?

    Consulting with a qualified insurance professional specializing in construction risks is recommended. They can assess your specific project needs and tailor a Builder's Risk policy that provides optimal protection at a competitive price.

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