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.

• ✓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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