Builders Risk Knowledge
Builders Risk for New Construction — Coverage From Groundbreaking to Final Inspection
New construction is your highest-risk construction period. An open frame with no roof, no locks, and no alarm system is vulnerable from day one. Here’s how builders risk protects your project through every phase.
- ✓Coverage starts before first materials are delivered
- ✓Structure, materials, in-transit property all covered
- ✓Lender-acceptable binders issued same day
- ✓Spec homes, custom builds, and owner-builder projects welcome
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✓ Same-Day COI
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Why New Construction Needs Builders Risk From Day One
The exposure on a new construction project is highest at its most vulnerable point — the open frame. An unfinished structure has no security, no weather protection, and often no active supervision after hours. Lumber staged on the lot is an open invitation. HVAC equipment delivered before installation creates a theft target. A windstorm that would bounce off a finished roof tears through open framing.
Builders risk for new construction is specifically designed to cover this window. The policy attaches to the project at groundbreaking and follows it through to completion — typically defined as the point of substantial completion, first occupancy, or policy expiration, whichever comes first.
The policy limit is set at the completed project value from day one. This means if a fire destroys everything on day three, the full replacement cost of the project is available — not just the value of work in place. This is the right way to structure it because rebuilding from nothing costs just as much as the original build.
Coverage protects materials and initial work from the moment they’re on-site. Foundation forms, rebar, and concrete work are insured.
The highest-risk phase. Lumber is staged, structure is open, and fire, wind, and theft exposure is at its peak. Theft of framing lumber is one of the most common builders risk claims.
Mechanical, electrical, plumbing rough-in. HVAC equipment, copper wiring, and plumbing fixtures are high-value theft targets.
Drywall, flooring, cabinets, and trim. Fire from hot work during finish electrical or HVAC is a key exposure at this phase.
What’s Covered on a New Construction Policy
New construction builders risk covers all work in place, materials on-site, and materials in transit from the same perils — fire, wind, hail, lightning, theft, vandalism, and collapse. Here are the areas where new construction policies have specific nuances:
Foundation coverage: Most policies include the foundation in the insured value. Some carriers require a separate foundation endorsement for projects with extensive below-grade work. We confirm this on every project with significant site work.
Temporary structures: Site trailers, temporary fencing, scaffolding, and material storage containers may be covered under some policies. Coverage varies by carrier — we verify this on every submission.
Landscaping and site work: Grading, utilities, and landscaping installed as part of the project may be covered up to a sub-limit. Standard policies often cap site-work coverage at a percentage of the main limit.
Why Contractors Choose Trade Safe for Builders Risk
Construction moves fast. We turn around builders risk quotes and binders the same day — lender-acceptable, all project types.
As an independent agency, we shop your project to every carrier with appetite for your risk — not just one or two.
We understand the nuances of builders risk — what gets claims paid, what causes gaps, and how to structure coverage for your specific project.
We track your policy terms and reach out before your coverage lapses — so you never face a funding gap or lender call about expired insurance.
Frequently Asked Questions
When should I get builders risk for new construction?+
Does builders risk cover a spec home?+
What happens to the policy when construction is complete?+
How is the policy limit set?+
Can I get builders risk for owner-builder construction?+
Does the policy cover foundation?+
Breaking Ground Soon? Get Your Builders Risk in Place Before Materials Arrive.
Same-day binders, lender-acceptable documentation, all project types and sizes. Call or quote online now.