Builders risk insurance for New York construction and renovation projects
Builders risk insurance covers a building while it is under construction or major renovation, along with the materials and equipment that will become part of it. In New York, that can mean a new mixed-use building in Queens, a gut renovation of a Brooklyn brownstone, or a ground-up house in Westchester.
Gordon Companies is an independent, family-owned brokerage that has served New York owners and contractors from Midtown Manhattan since 1968. We compare builders risk forms across carriers and match the policy to your contract, and you work with a real person the whole way through.
What builders risk insurance covers
Builders risk is a form of property insurance written for the life of a project instead of a calendar year. Depending on the policy, it can cover:
- The structure itself as it goes up
- Materials and supplies on site, in transit, or stored at another location
- Temporary structures such as scaffolding, fencing and forms
- Damage from fire, wind, theft, vandalism, lightning, explosion and similar covered causes
- Soft costs, such as added interest, permit fees and professional fees, when a covered loss delays the project (often by endorsement)
The limit is generally based on the full completed value of the project, meaning materials and labor but not land. Your construction budget is the best starting point for setting it.
What builders risk does not cover
It is not liability insurance. Injuries on the job and damage to neighboring property fall under the contractor’s general liability coverage. Contractors’ own tools and equipment usually need separate coverage, and faulty workmanship, design errors, wear and tear, and mechanical breakdown are common exclusions, though resulting damage may be covered.
What is specific to building in New York
Lenders typically require builders risk on financed construction, and contracts usually spell out whether the owner or the general contractor buys it. We read those requirements first, so the right parties are named and the coverage matches what you signed.
Much of the work in the city is renovation rather than new construction. On a renovation, the existing building is often not covered by builders risk automatically. It may need to be added to the policy or stay insured under the owner’s commercial property or homeowners policy, and we coordinate the two so there is no gap.
Flood and earthquake are commonly excluded but may be available by endorsement. For projects in waterfront neighborhoods or flood zones around the city and Long Island, flood is a question to settle early.
How we shop builders risk and what affects cost
Pricing depends on the completed value, construction type, location, project length, the experience of the contractor, theft and fire controls on site, and the deductible. Terms are commonly written for the length of the job, with extensions available if the schedule slips, subject to the carrier’s approval.
Builders risk is usually one part of a larger program. Contractors also need their own contractors insurance, and many public and private projects require surety bonds for bid, performance and payment.
Gaps we look for:
- A limit based on an outdated budget after change orders
- No coverage for materials stored off site or in transit
- Missing soft cost or delay coverage that a lender expects
- Occupancy rules that end coverage when part of the building is put to use
- No plan for permanent property coverage once the project is complete
Questions we hear about builders risk insurance
Who should buy builders risk, the owner or the contractor?
Either can, and the construction contract usually decides. What matters most is that one policy protects the interests of the owner, the general contractor and subcontractors, without overlapping policies or gaps.
Do I need builders risk for a home renovation?
For a major renovation, often yes. Many homeowners policies limit or exclude coverage when a home is vacant or under heavy construction, so we check your current policy before work starts.
When does builders risk coverage end?
Typically when the project is complete, accepted or occupied, or when the policy term ends, whichever comes first. Permanent property coverage should be in place before that date.
What if the project runs late?
Many policies can be extended, but extensions are not automatic and may be limited. Let us know as soon as the schedule changes so coverage does not lapse.
Related coverage
Start your builders risk quote
Send us the construction budget, schedule and contract insurance requirements, and we will compare options across carriers. Start a quote online or call 212-687-2525, Monday to Friday, 9am to 5pm, to talk with Aaron Gordon or another real person on our team.
