Builders Risk Insurance
First-party property coverage for a building under construction and the materials that go into it, from groundbreaking to completion.
This is an estimate, not a bound policy — a licensed VAB producer confirms final terms before coverage starts. Sgt. Savings can answer questions but can't quote, bind, or guarantee coverage.
A construction project is exposed the entire time it's underway — the framed structure, the materials staged on site, and anything still in transit or sitting at a temporary storage location. Builders Risk Insurance is the standalone version of that coverage for any general contractor, remodeler, or owner-builder — separate from VAB's homebuilder-partnership Builder's Risk + GL bundle, which is tied to a specific homebuilder program. This is the product for a project that doesn't fit that program: a commercial build, a custom remodel, or an owner acting as their own general contractor.
Who This Is Really For
The ideal buyer.
The ideal buyer is a general contractor, developer, or owner-builder about to break ground on a project that falls outside a homebuilder's standing partnership program — a custom home built by its owner acting as GC, a commercial build, or a renovation where the structure and materials are exposed for months at a time. The trigger is almost always the project itself: a lender or municipality requiring proof of builders risk coverage before a permit or construction loan closes, or a contractor realizing mid-bid that their general liability policy doesn't touch the structure itself while it's under construction. This buyer usually already has a construction timeline and a materials plan in hand, including where materials will sit before they're built in, because that detail directly shapes how the policy is written. What makes this the right fit over trying to extend a completed-property policy is that a standard homeowners or commercial property policy simply doesn't attach to a structure that doesn't legally exist as a finished building yet — this is the product actually priced for that gap.
- A general contractor or developer starting a new construction project who needs coverage from groundbreaking through substantial completion
- An owner-builder acting as their own general contractor on a custom home or major remodel
- A remodeling or renovation contractor working on a project where materials and the structure are exposed mid-project
- A project that needs coverage for materials at a temporary storage location or in transit to the site, not just once they're built in
- A commercial or multi-unit residential project that doesn't run through a single homebuilder's standing program and needs its own standalone policy
What It Covers
Coverage, broken down.
Coverage A — Building Under Construction
Pays for direct physical loss or damage to the structure itself while it's being built, from a covered cause of loss during the policy's coverage period.
Coverage B — Construction Materials
Covers materials meant for the project whether they're on the job site, at a temporary storage location, or in transit to either one.
Buy-Back Options for Named Perils
Earth movement, flood, and building-code or ordinance-driven costs are excluded from the base policy but can be added back where the project's risk calls for it.
Illustrative Scenario — How This Coverage Responds
Illustrative scenario — a mid-project fire
A general contractor is framing a spec home when an electrical fire during construction damages the framed structure and a pallet of lumber staged on site. Coverage A responds to the damage to the building under construction, and Coverage B responds to the materials that hadn't yet been built in — instead of the loss falling entirely on the contractor or the project owner.
Illustrative example for education only — not a claim outcome or a promise of payment. Every claim depends on the actual policy issued and its terms.
More Than One Way In
More scenarios.
Real coverage doesn't fit one story. Here's who else this shows up for.
The owner-builder acting as their own GC
A homeowner decides to act as the general contractor on their own custom-home build rather than hiring one, coordinating subcontractors directly. Because there's no builder's standing partnership program behind the project, they write a standalone builders risk policy matched to their own construction timeline before groundbreaking.
The commercial developer starting a multi-unit project
A developer breaks ground on a mixed-use commercial building with a construction timeline stretching well over a year. The policy's coverage period is set to match that full timeline, with materials protected both on site and at a staging yard used during framing.
The remodeling contractor mid-renovation
A renovation contractor guts an existing structure down to the studs as part of a major remodel, leaving both the exposed structure and staged materials vulnerable for weeks. Builders risk coverage follows the project through that vulnerable window, distinct from the homeowner's now-lapsed standard property policy.
Know The Gaps
What this doesn't cover.
Every policy has limits. Knowing them before you buy is how you avoid a denied claim later.
Earth movement, unless added back
Earthquake and land-shift exposure sits outside the base policy — if your site has that risk, ask about adding it.
Flood, unless added back
Same story as earth movement — flood needs to be added if your site is exposed, especially near a floodplain.
Water backup from a sewer or drain
This is a distinct, commonly-excluded cause of loss on a builders risk form — worth asking about separately if the site has drainage risk.
Increased costs to meet a building code or ordinance, unless added back
If a loss triggers a code-upgrade requirement during rebuild, that extra cost isn't automatically covered.
Loss caused by a government action like a seizure or stop-work order
This is a property policy for physical loss, not coverage for regulatory or governmental interference with the project.
Off-site utility service failures
A power or utility outage that originates off your site and outside your control falls outside the policy.
Neglect to protect the property after a loss, or an undisclosed increase in the project's risk
The policy expects you to protect materials and the structure after a covered loss, and to tell VAB if the project's risk changes mid-build — for example, work stopping for months.
Dishonest or criminal acts by an insured or an employee
This covers accidental physical loss, not theft or fraud committed by people working on the project — that needs a crime or fidelity policy.
Behind The Quote
What goes into the decision.
What actually moves your price and your approval — no black box.
Project location and exposure to flood or earth movement
Since both are excluded from the base policy, a site near a floodplain or in a seismically active area needs those buy-backs actively discussed and added — underwriting weighs the site's real geography, not just its address.
Construction timeline length and accuracy
The coverage period is set to match your stated groundbreaking-to-completion schedule, so an unrealistic or outdated timeline creates real risk — tell VAB before the original period lapses if the project runs long.
Where materials are staged before being built in
Coverage B follows materials on site, at a temporary storage location, and in transit — disclosing every staging location accurately is what keeps a delivery or storage-yard loss from falling into a gap.
Project type — new construction, commercial, or remodel
A ground-up new build, a commercial project, and a gut renovation each carry a different risk profile, which shapes both pricing and which buy-back options are worth discussing for that specific project.
Security and site-protection practices
Because failing to protect the property after a loss, or letting project risk change without telling VAB, can affect a claim, underwriting cares about real site practices — fencing, lockup, and how work stoppages are handled.
Getting Covered
How it actually works.
- Set the coverage period to match your actual construction timeline, from groundbreaking through substantial completion.
- List the project site and any temporary storage locations where materials will sit before they're built in.
- Add buy-back coverage for earth movement, flood, or ordinance-driven costs if your site's risk calls for it.
- If a covered loss happens mid-project, file a claim covering both the structure (Coverage A) and any damaged materials (Coverage B).
Let's get you covered.
Tell us what you need on Builders Risk Insurance — a licensed VAB advisor follows up personally. No bots, no runaround.
Looking for a session that's already scheduled? Browse upcoming webinars.
Availability
Available nationwide, written to match the project's location and timeline.
Questions, answered straight
No jargon on builders risk insurance — just what you're actually asking.
Typically groundbreaking through substantial completion or occupancy — you set the coverage period to match your project's actual timeline when the policy is written.
Yes — Coverage B follows construction materials at a temporary storage location and while in transit, in addition to once they're on site.
No. That bundle is tied to a specific homebuilder partnership program. This is the standalone version for any construction project — a general contractor, a remodeler, or an owner-builder — that doesn't run through that program.
Yes, as buy-back options where the project's location calls for it — talk to a VAB advisor before you bind the policy.
Dishonest or criminal acts by an insured or an employee are excluded — theft or fraud on a project needs separate crime coverage, not builders risk.
Tell VAB before the original coverage period lapses — an undisclosed change in the project's risk or timeline can affect how a later claim is handled.
Beyond This Coverage
What people in your situation also need.
VA Construction Loan
An owner-builder or veteran-owned GC financing the build itself needs a construction loan alongside coverage on the structure while it's rising.
ExploreBuilder Partnerships
A contractor running standalone projects today may still be a fit for VAB's standing homebuilder partnership track as their volume grows.
ExploreCommercial Real Estate Financing
A commercial or multi-unit developer typically needs project financing running in parallel with builders risk coverage on the structure.
ExploreRelated Coverage
Coverage people pair with this.
Project Wrap-Up Liability
One liability policy covering every enrolled contractor on a single construction project.
Learn moreSubcontractor Default Protection
Financial protection for general contractors when an enrolled subcontractor defaults.
Learn moreOwners' Interest Project Liability
Liability coverage scoped to one specific project, protecting the property owner directly.
Learn moreReady to talk it through?
Get a quote in minutes, or ask Sgt. Savings a straight question first — no pressure, no runaround.
Insurance products described on this page are marketed by The Veteran Alliance, a licensed insurance producer, and underwritten by one or more separately licensed insurance companies, which may include Corgi Insurance Company and its affiliates. The insurer that actually underwrites your policy, its licensing status in your state, and any state-required notices will be identified in your quote and policy documents. Coverage, limits, eligibility, and pricing are determined by the underwriting insurer, may vary by state, and may change. Nothing on this page is a quote, an offer of insurance, a binder, or a guarantee of coverage — coverage takes effect only when a policy is issued.