Builders Risk Answer

Does Builders Risk Cover Materials in Transit?

Yes, most policies include transit coverage with a sub-limit. Here’s what’s covered while your materials are on the way to the job site and what limits apply. Trade Safe arranges builders risk insurance with soft costs and delay-related exposure factored in, without the coverage gaps that show up in generic policies.

• ✓Materials in transit: covered under most builders risk policies
• ✓Separate sub-limit applies. Verify against your largest shipment
• ✓Covers delivery by truck, common carrier, or insured’s vehicle
• ✓Off-site storage coverage is separate, may require endorsement

The Direct Answer

Yes, most builders risk policies extend coverage to materials while they’re in transit to the job site. This transit coverage applies while materials are being delivered by a supplier, shipped by common carrier, or transported by the insured themselves.

The transit coverage typically has its own sub-limit separate from the main policy limit. Common transit sub-limits range from $25,000 to $100,000 per occurrence. If you’re expecting a large material delivery, $80,000 of HVAC equipment, for example, verify that your transit sub-limit is adequate for that shipment.

Coverage applies from the time materials are loaded for delivery until they arrive at the job site. Once on-site, they fall under the main policy’s on-site property coverage.

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