Builder’s Risk Insurance

Q: What is the difference between property Insurance and builder’s risk insurance?

Builder’s Risk Insurance is a special type of Property Insurance covering you for the duration of your new build or renovation project. It may protect buildings under construction, materials on-site, and liability in the event of loss or damage due to external causes such as fire, wind, vandalism, explosion, and slip and falls.

Are you building a dream home? Are you doing a significant renovation to your home or commercial space?

Protect your dream with Builder’s Risk Insurance while your home/space is under construction.

Trusted by over 300,000 Canadian small business owners!

Save up to 35% on your insurance

Get the best insurance quote in a few clicks!

Trusted by over 300,000 Canadian small business owners!

Save up to 35% on your insurance

Get the best insurance quote in a few clicks!

Get a Free Quote

Partnerships with over 50 leading Canadian insurance providers

Why Choose Zensurance?

We help Canadian small business owners save time and money by providing
a convenient and affordable way to buy business insurance.

Convenience

Purchase your insurance anytime, anywhere, with our easy-to-use online platform.

Cost

Compare rates across leading insurance companies to ensure you get the best price on your premium.

Curation

We use data and analytics to identify the right insurance policies for your business.

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Claims Examples

Problem: You store materials for a large commercial project in your warehouse a few kilometres from the site. A fire breaks out and destroys everything inside, including the materials.

Outcome: Your Builder’s Risk Insurance covers the cost to replace the materials, and your Commercial Property Insurance covers the restoration of your warehouse, totalling $375,000.

Problem: During the construction of a condo building, it is discovered that poor caulking on the balconies has allowed cold air to come into the building and freeze some of the pipes, resulting in water damage.

Outcome: Your Builder’s Risk Insurance covers the cost to replace the pipes and reseal the affected balconies, totalling $88,000.

Problem: Your team is hired to do an extensive restoration of a historical home before it opens as a museum. Vandals break in overnight and cause significant damage to the property.

Outcome: Your Builder’s Risk Insurance covers the costs of repairing the damages and hiring additional contractors to complete the project before opening. The total cost covered is $175,000.

Builder’s Risk Insurance, Explained.

What is Builder’s Risk Insurance?

Builder’s Risk or Course of Construction is the type of insurance that protects your building and liability for the project’s duration. Home and business owners are often required by the contractor to insure their project with a builder’s risk insurance policy as property claims can be expensive.

The property owner typically requires a builder’s risk insurance for the following:

New home construction,
New commercial build construction,
Adding a second story or addition on the property; or,
Major renovation projects.

What does Builder’s Risk Insurance Cover?

Builder’s Risk Insurance, also known as Course of Construction Insurance, covers the building, construction materials on-site, and liability in the event of physical loss or damage due to an insured event, such as fire, theft, or vandalism. Water damage is covered up to a specified limit. Overland flood and sewer backup risks can be covered at an additional cost.

A Builder’s Risk Insurance policy covers you from the beginning to the end of the project. We work with you to ensure you are adequately covered every step of the way.

What is the cost of Builder’s Risk Insurance?

The cost of Builder’s Risk Insurance will vary based on the project and the services you offer.

When you fill out our online application, we will ask some questions about your business to understand your needs better. The following factors are taken into consideration when determining the best policy options for you:

Project Cost (Hard and Soft)
Value of the Building
Type of Project
Previous Insurance Claims

What is not covered by Builder’s Risk Insurance?

A Builder’s Risk Insurance policy does not cover damages to the insured property after project completion or damages caused by:

Government activities;
Mechanical breakdowns;
Contractual penalties; and,
Faulty design, planning, or materials.

To better understand your coverage limitations, please speak to your broker.

Who needs Builder’s Risk Insurance?

Any individual or business looking to build or do significant renovations should protect themselves and their property with a Builder’s Risk or Course of Construction policy.

Some of our clients include:

Homeowners
Business Owners
General Contractors
Construction Companies
Real Estate Developers
Renovation Contractors

Who pays for Builder’s Risk Insurance?

Purchasing Builder’s Risk Insurance to cover a construction project is typically the property owner’s responsibility. When finalizing the details of a construction project, be sure to identify who will be responsible for purchasing the policy and ensure all involved parties are covered.

Frequently Asked Questions

Who pays for builder’s risk insurance?Zensurance

Who pays for builder’s risk insurance?

Purchasing builder’s risk insurance to cover a construction project is typically the property owner’s responsibility. When finalizing the details of a construction project, be sure to identify who will be responsible for purchasing the policy and ensure all involved parties are covered.

What is the difference between property Insurance and builder’s risk insurance?Zensurance

What is the difference between property Insurance and builder’s risk insurance?

Builder’s Risk Insurance is a special type of Property Insurance covering you for the duration of your new build or renovation project. It may protect buildings under construction, materials on-site, and liability in the event of loss or damage due to external causes such as fire, wind, vandalism, explosion, and slip and falls.

Do I need a builders risk policy if I already have contractors insurance?Zensurance

Do I need a builders risk policy if I already have contractors insurance?

Yes. A typical contractor’s insurance policy does not cover buildings under construction. It is essential to cover your building and liability while the project is in process.