Builders risk insurance is an essential form of coverage for construction projects in Connecticut. Whether you’re a general contractor, property owner, or developer, having the right builders risk policy in place can protect your investment from unexpected events like fire, theft, or storm damage. In this guide, we’ll explore the ins and outs of Connecticut builders risk insurance, including its benefits, what it covers, who needs it, and more.
What Is Builders Risk Insurance?
Builders risk insurance, also known as course of construction insurance, is a specialized form of property insurance. It provides protection for buildings and structures that are under construction or renovation. The policy typically covers damage caused by:
● Fire
● Theft
● Vandalism
● Wind and hail
● Lightning
● Explosions
● Some types of water damage
This type of policy ensures that your construction project stays on track, even when unexpected issues arise.
Why Is Builders Risk Insurance Important in Connecticut?
Connecticut experiences a variety of weather patterns, including strong winds, heavy rains, and snowstorms, which can cause damage to construction sites. Additionally, theft and vandalism are risks at job sites where materials and equipment are often left unattended. Builders risk insurance in Connecticut provides peace of mind by covering these exposures, helping businesses avoid financial setbacks.
Who Needs Connecticut Builders Risk Insurance?
Builders risk insurance is beneficial for a wide range of individuals and organizations involved in construction, such as:
● General contractors
● Property developers
● Homeowners managing renovations
● Subcontractors (in some cases)
● Architects and engineers (if they have a financial stake in the project)
Anyone with a financial interest in a building under construction should consider builders risk insurance.
What Does a Connecticut Builders Risk Policy Cover?
A standard builders risk insurance policy in Connecticut typically covers:
● Structure under construction: Whether it’s a new building or a renovation.
● Materials and supplies: Items stored on-site, in transit, or temporarily off-site.
● Temporary structures: Such as scaffolding, fencing, or construction trailers.
● Labor costs: If the project is delayed due to a covered event.
Some policies also offer optional extensions for soft costs, including legal fees, loan interest, and lost rental income if delays occur.
What’s Not Covered?
Builders risk insurance doesn’t cover everything. Common exclusions include:
● Employee injuries (covered by workers’ comp)
● Accidents involving vehicles
● Faulty design or poor workmanship
● Earthquakes and floods (unless added separately)
● Wear and tear
It’s important to read your policy carefully and work with a knowledgeable agent to ensure proper coverage.
Learn more about tailored coverage solutions by visiting Connecticut Builders Risk Insurance to protect your next construction project.
How Much Does Builders Risk Insurance Cost in Connecticut?
The cost of builders risk insurance depends on several factors, including:
● Project value: The higher the construction cost, the more expensive the policy.
● Location: Sites in areas prone to severe weather or theft may have higher premiums.
● Project duration: Longer projects typically cost more to insure.
● Coverage limits and deductibles: Higher coverage limits mean higher premiums.
● Type of construction: Wood-framed buildings usually cost more to insure than concrete or steel structures.
On average, expect to pay between 1% and 4% of the total construction cost for a builders risk policy.
How to Choose the Right Policy
When selecting a builders risk insurance policy in Connecticut, consider these key steps:
- Work with a reputable insurance provider. Choose an agency experienced in construction insurance.
- Assess your project’s risks. Understand the specific challenges of your location and build type.
- Tailor your coverage. Add endorsements for soft costs, flood coverage, or other special needs.
- Set accurate limits. Make sure your policy covers the full replacement cost of the structure.
- Review contract requirements. Ensure your policy meets the requirements of lenders or project stakeholders.
When Should You Purchase Builders Risk Insurance?
It’s crucial to purchase your builders risk policy before construction begins. Most policies are written for the duration of the project and may last anywhere from three months to a year or more. Coverage typically ends when:
● The project is completed
● The property is occupied
● The building is sold or permanently abandoned
Builders Risk for Renovations and Remodels
Builders risk insurance isn’t just for new construction. If you're renovating an existing structure in Connecticut, you may also need coverage—especially if structural changes are involved. Renovation policies can cover both the existing structure and the new work being done, depending on how the policy is written.
Builders Risk Insurance vs. General Liability Insurance
Many people confuse builders risk insurance with general liability insurance. Here’s how they differ:
● Builders risk covers physical damage to the construction project itself.
● General liability covers third-party bodily injury and property damage.
Most contractors need both types of insurance to be fully protected.
Tips to Maximize Your Policy
Here are some tips to make the most of your builders risk policy:
● Maintain site security: Use fencing, lighting, and surveillance to prevent theft and vandalism.
● Keep accurate records: Track materials, labor costs, and timelines.
● Communicate with your insurer: Inform them of any major changes to the project.
Final Thoughts
Connecticut builders risk insurance is a vital tool for protecting your investment during construction. From new home builds to large-scale commercial projects, having the right policy in place can safeguard against loss and keep your project on track. By understanding your coverage needs, working with an experienced insurance provider, and maintaining proactive risk management, you can build with confidence.
For comprehensive coverage tailored to your project needs, explore your options with Connecticut Builders Risk Insurance through a trusted local provider.
