The Basics of Builder’s Insurance

New York Property Insurance

Builder’s Risk Insurance is a type of New York property insurance which covers a property while it’s under construction or renovation. This includes materials, fixtures, machinery, supplies, and construction equipment. Although it’s called builder’s insurance, the parties covered may include building owners, contractors, sub-contractors and others. Because all participants in the project are covered, it tends to be the preferred type of insurance policy on a construction project.

What it Protects Against

Builder’s risk insurance almost always provides one of two types of coverage: all-risk and named peril. All-risk, the more common of the two, insure against all risks of loss or damage, except for those which are specifically not covered, while named peril policies insures against loss or damage from specifically named risks. Most policies protect against the following:

  • Fire
  • Wind
  • Theft
  • Lightning
  • Hail
  • Explosion
  • Vandalism
  • Vehicles and aircraft

Risks which usually aren’t covered include:

  • Earthquake
  • Employee theft
  • Water damage
  • War
  • Government Action
  • Damage from faulty design, planning, workmanship, or materials


Depending on the policy, coverage may be extended to scaffolding, temporary buildings, and debris of covered property caused by one of the covered causes of damage to the property. One of the more common extensions is transit insurance, which is a kind of New York property insurance which covers property while it’s being shipped to the construction site.