Builders Risk Insurance

  • Builders risk coverage is designed for your home during construction
  • It covers the structure, materials, and onsite equipment protection
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By Kristine Lee
Updated December 1, 2025
Reviewed By Beth Swanson
Edited By Renata Balasco
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Kristine Lee

Insurance Analyst

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

Credentials
  • Licensed Insurance Agent — Property and Casualty
  • 6+ years of Experience in the Insurance Industry
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Beth Swanson

Insurance Analyst

Beth joined The Zebra in 2022 as an Associate Content Strategist. A licensed insurance agent, she specializes in creating clear, accessible content t…

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  • Licensed Insurance Agent — Property and Casualty
  • Associate in Insurance (AINS)
  • Professional Risk Consultant (PRC)
  • Associate in Insurance Services (AIS)
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Renata Balasco

Senior Content Strategist

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

Credentials
  • Licensed Insurance Agent — Property and Casualty
  • 5 years of experience in the insurance industry
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Dwelling under construction insurance

If your home is still being built, you’ll need special coverage to protect it. Standard homeowners insurance doesn’t apply until construction is complete — and building sites are vulnerable to theft, vandalism, and weather damage.

Dwelling under construction insurance, also called builder’s risk insurance, covers your home and materials while it’s being built. It keeps your investment protected until you’re ready to move in.

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  1. When you need it
  2. Builders insurance coverage
  3. FAQs

When to buy builders risk insurance

If you have a major financial stake in a renovation or new home construction project, consider builders risk insurance. A typical homeowner’s policy may exclude from coverage damages to a home that is under renovation or construction.

If you’re not sure whether your project requires additional dwelling under construction coverage, reach out to an insurance agent with your carrier.

new home
You may need builders risk insurance if:
  • Your home is being built
  • Your home is undergoing major changes, requiring expensive tools and labor

What does builders risk insurance cover?

Builders risk coverage, also known as course of construction insurance and dwelling under construction insurance, varies considerably by insurance company and by the project.

Generally, it covers damage sustained by: 

  • The dwelling's physical structure
  • Materials 
  • Supplies 
  • Equipment onsite while your home is under construction

 

What is not covered by builders risk coverage?

Builders risk insurance offers less coverage than a typical homeowners policy. With dwelling under construction coverage, you receive no liability insurance coverage, personal property coverage, living expenses coverage, or medical payments to others insurance. This coverage is supposed to be temporary. Once the construction project is finished, you should update your coverage to a standard home insurance policy.  
 
💡 Tip:  Read up on attractive nuisances in construction zones and vacant home insurance.

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Builders risk insurance FAQs:

Homeowners, contractors, or builders usually purchase builders risk insurance to protect a home and materials during construction.

The cost generally ranges from 1% to 5% of the total construction budget, which can work out to a few hundred dollars per month depending on the project size.

A standard builders risk policy usually covers the structure under construction, materials, and equipment on-site against perils like fire, theft, vandalism, or weather damage.

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About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
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  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.