Builders Risk Insurance

Construction Coverage

Protect Your Construction Investment

Construction projects represent significant investments of time, money, and resources. Whether you’re building a new structure from the ground up or renovating an existing property, your project faces unique risks that standard property insurance doesn’t cover. That’s where Builders Risk Insurance comes in.

At Densmore Insurance Strategies, Inc., we understand the complexities of construction projects in Iowa. Our Builders Risk policies are designed to protect your investment from the moment ground is broken until the final inspection is complete. We cover:

Don’t let unexpected events derail your construction timeline or budget. With the right Builders Risk coverage, you can focus on completing your project while we handle the protection.

What Is Builders Risk Insurance?

Builders Risk Insurance, also known as Course of Construction Insurance, is a specialized type of property insurance that provides coverage for buildings and structures while they are being constructed, renovated, or remodeled.

Temporary Coverage

Unlike standard property insurance, Builders Risk is designed as temporary coverage that protects your project during the construction phase. Once construction is complete and the building is occupied, you’ll transition to a permanent property insurance policy.

Policies typically last from 3 months to 12 months, with options to extend if your project timeline changes.

Comprehensive Protection

Builders Risk Insurance covers the structure being built, materials and supplies stored on-site or in transit, and equipment being installed as part of the building. This includes protection against fire, theft, vandalism, and weather-related damage.

Coverage can be customized to include soft costs like architectural fees, permits, and additional interest expenses if delays occur.

Did You Know?

Construction projects face a 35% higher risk of property damage compared to completed buildings due to exposed materials, ongoing work activities, and the presence of multiple contractors on-site.

Construction Coverage

What Does Builders Risk Cover?

Our Builders Risk policies provide extensive coverage tailored to protect every aspect of your construction project from start to finish.

Structure Coverage

Protects the building itself during all phases of construction, from foundation to finishing touches.

Materials & Supplies

Covers building materials whether stored on-site, at a temporary location, or in transit.

Equipment & Fixtures

Protects permanently installed equipment and fixtures that become part of the building.

Temporary Structures

Coverage for scaffolding, temporary fencing, and other structures needed during construction.

Soft Costs

Reimburses additional expenses incurred if a covered loss delays your project completion.

Transit Coverage

Protects materials and equipment while being transported to your construction site.

Covered Perils

Builders Risk Insurance protects your construction project against a wide range of perils that could cause damage or loss during the building process

Fire & Smoke

Damage from fires, smoke, and explosions

Theft & Vandalism

Stolen materials and malicious damage

Vehicle Impact

Damage from vehicles or aircraft

Weather Events

Wind, hail, lightning, and storms

Water Damage

Burst pipes and accidental discharge

Collapse

Structural collapse during construction

Common Exclusions

While Builders Risk provides comprehensive coverage, there are some exclusions to be aware of. Additional coverage may be available through endorsements.

Employee theft (covered under separate policy)
Faulty workmanship or design defects
Normal wear and tear
War and nuclear hazards
Intentional damage by the insured
Flood and earthquake (available as endorsements)

Pro Tip

If your project is in a flood zone or earthquake-prone area, ask about adding these coverages as endorsements to your policy for complete protection.

Who Needs Builders Risk Insurance?

Whether you’re a property owner, contractor, or developer, Builders Risk Insurance provides essential protection for anyone with a financial stake in a construction project.

Property Owners

If you own the land and are building a new structure, you have the most to lose if something goes wrong during construction.

General Contractors

As the primary contractor responsible for the project, you may be required to carry Builders Risk coverage by contract.

Homeowners

Building your dream home? Protect your investment from the foundation pour to the final walkthrough.

Commercial Developers

Large-scale commercial projects require comprehensive coverage to protect significant investments.

Renovation Contractors

Major renovation and remodeling projects also need protection during the construction phase.

Lenders & Investors

Financial institutions often require Builders Risk Insurance before funding construction loans.

$1.5T

Annual U.S. construction spending

85%

Of lenders require Builders Risk

$50K+

Average construction claim cost

Project Coverage

Types of Projects We Cover

From small residential builds to large commercial developments, we provide Builders Risk coverage for construction projects of all sizes and types throughout Iowa.

Residential Construction

New home builds, custom homes, and residential developments

Single-family homes

Multi-family units

Townhouses

Condominiums

Commercial Buildings

Office buildings, retail spaces, and mixed-use developments

Office complexes

Shopping centers

Hotels

Restaurants

Industrial Facilities

Warehouses, manufacturing plants, and distribution centers

Warehouses

Factories

Processing plants

Storage facilities

Renovation Projects

Major renovations, additions, and remodeling work

Home additions

Commercial renovations

Historic restorations

Tenant improvements

Real-World Claims Examples

See how Builders Risk Insurance protects construction projects from common losses that can occur during the building process.

Fire Damage

A fire breaks out due to welding sparks igniting nearby materials.

Loss Amount

$175,000

What's Covered

Replacement materials, installation labor, and project delays.

Storm Damage

A severe thunderstorm with high winds damages the partially completed roof.

Loss Amount

$85,000

Loss Amount

Water extraction, drying, material replacement, and mold remediation.

Theft

Copper wiring and HVAC equipment are stolen from the job site overnight.

Loss Amount

$175,000

What's Covered

Replacement materials, installation labor, and project delays.

Water Damage

A temporary water line bursts, flooding the basement and first floor.

Loss Amount

$175,000

What's Covered

Water extraction, drying, material replacement, and mold remediation.

Why Choose Densmore Insurance?

As an independent insurance agency serving Iowa, we’re committed to finding the right Builders Risk coverage for your construction project.

Local Iowa Expertise

We understand Iowa's unique construction challenges, from weather patterns to local building codes.

Independent Agency

We work with multiple carriers to find you the best coverage at competitive rates.

Customized Policies

Every construction project is unique. We tailor coverage to match your specific needs.

Claims Support

When you need to file a claim, we're here to guide you through the process.

Fast Quotes

Get a competitive quote quickly so you can start your project on schedule.

Trusted Partner

We've helped countless Iowa contractors and property owners protect their investments.

Frequently Asked Questions

Get answers to common questions about cyber liability insurance.

How much does Builders Risk Insurance cost?

Builders Risk Insurance typically costs between 1% to 4% of the total construction value. For example, a $500,000 project might cost $5,000 to $20,000 for coverage. Factors affecting cost include project type, location, construction materials, and coverage limits.

Who should purchase Builders Risk Insurance?

Either the property owner or the general contractor can purchase Builders Risk Insurance. The policy should name all parties with a financial interest in the project as additional insureds. Many construction contracts specify who is responsible for obtaining coverage.

When does Builders Risk coverage begin and end?

Coverage typically begins when construction starts or when materials are first delivered to the site. It ends when the building is completed and occupied, when the policy expires, or when permanent property insurance takes effect—whichever comes first.

Does Builders Risk cover subcontractor work?

Yes, Builders Risk Insurance covers work performed by subcontractors as part of the construction project. However, subcontractors should still carry their own liability insurance for their operations.

Is Builders Risk Insurance required?

While not legally required in most cases, Builders Risk Insurance is often required by lenders, investors, or contract terms. Even when not required, it’s highly recommended to protect your significant investment during construction.

What's the difference between Builders Risk and General Liability?

Builders Risk covers damage to the structure being built and materials, while General Liability covers third-party injuries and property damage caused by your operations. Most construction projects need both types of coverage.

Can I extend my Builders Risk policy if construction takes longer?

Yes, most Builders Risk policies can be extended if your project timeline changes. Contact us before your policy expires to arrange an extension and ensure continuous coverage.

Does Builders Risk cover tools and equipment?

Builders Risk typically covers equipment and fixtures that will become a permanent part of the building. Contractor tools and mobile equipment are usually covered under a separate Contractors Equipment policy.

Get Your Builders Risk Quote

Protect your construction investment with the right coverage.

Whether you’re building a new home, renovating a commercial property, or developing a large-scale project, we’ll help you find the Builders Risk coverage that fits your needs and budget. Our team understands construction projects and can customize a policy that protects your investment from start to finish.

Phone

(515) 967-3390

Email

info@densmoreis.com

Address

85 Paine Street SE, Suite G, Bondurant, Iowa 50035