Construction projects in New York move quickly, involve multiple parties, and can tie up a lot of money before the first tenant or customer ever walks through the door. As such, many contractors, developers, and property owners look closely at builders risk insurance in NY before work begins.
As demand for residential and commercial projects ramps up in New York, having proper builders risk insurance is crucial. With the right coverage in place, you can protect the structure as it goes up, along with the materials and equipment essential to keeping the job on schedule. Provident Protection Plus helps businesses evaluate project exposures and secure coverage that fits the work, the site, and the timeline, not just the paperwork.
What Builders Risk Insurance Covers During Construction
A builders risk policy covers the structure while it is under construction, plus many of the materials that will become part of the finished building. Depending on the policy terms, coverage may include:
- Materials stored on the site for future installation
- Materials in transport to the site for use
- Losses caused by events such as fire, vandalism, and theft
- Protection for installed materials and materials stored on or off the job site
Some builders risk programs also offer optional coverage for windstorm and flood, which can be especially relevant depending on the project location. Coverage can also include endorsements (more on that below) to address certain costs tied to covered delays, including “soft costs,” such as engineering fees or permitting changes.
Who Typically Carries Builders Risk Insurance In NY?
There is no single universal rule for who buys the policy. On many projects, the contract determines whether the owner, developer, or general contractor is responsible for securing builders risk insurance.
What matters most is clarity before construction starts, especially when multiple stakeholders have financial interests in the build. If you are bidding work, signing a loan agreement, or managing a build with several subcontractors, confirm:
- Which party must purchase the policy
- Which parties must be listed as insureds or additional insureds
- Whether materials in transit or off-site storage are included
This is also a good time to align the builders risk policy with broader planning for proper business insurance in New York, so there are no gaps between project coverage and operational coverage.
How Builders Risk Insurance Fits Into Business Insurance Planning
Builders risk insurance is project-specific. It protects the value of work in progress and materials during construction, but it does not replace other coverage a business may need. Builders risk insurance in NY focuses on property under construction, not liability, vehicles, or ongoing operations.
It is also essential to understand what builders risk does not cover. Common exclusions include wear and tear, employee theft, design or manufacturing defects, and mechanical breakdown of equipment. These risks typically require separate business insurance policies, endorsements, or floaters.
Because coverage needs often change as a project evolves, you’ll want to coordinate builders risk insurance with your broader insurance program. Working with a local expert like Provident Protection Plus can help reduce gaps and keep coverage aligned with your project and contracts.
What Affects Builders Risk Insurance Limits & Duration?
Coverage limits usually reflect the completed value of the project, including labor and materials. The duration typically relates to the construction timeline.
Key factors that influence limits and terms include:
- Project value and scope
- Timeline and anticipated completion date
- Exposure of materials and equipment to theft and vandalism
- Location risks, including weather and site access
Policies often end when the project is completed, occupied, or put to its intended use, depending on the terms.
Covering Projects From Start to Finish
Builders risk coverage is easier to place when you plan early, document the project clearly, and match limits to the real cost of rebuilding after a loss.
If you are evaluating builders risk insurance for a New York project, it helps to work with an expert who can coordinate the policy with your broader business insurance needs, your contracts, and your schedule. Call Provident Protection Plus today to learn more and request a quote.
Builders Risk Insurance FAQ
How does builders risk insurance work?
Builder risk insurance provides property coverage for a structure while it is under construction. It can also cover materials intended for the project, including materials stored on-site and, depending on the policy, materials in transit or in storage.
When does builders risk insurance kick in?
Coverage applies to specific causes of loss listed in the policy. Review terms and exclusions to ensure you are not underinsured or missing coverage.
How much builders risk coverage do I need?
Coverage is often based on the completed value of the project, including labor and materials. Limits should reflect what it would cost to repair or replace covered work and materials after a loss. If prices, scope, or timelines change during construction, the policy may need updates to avoid underinsuring the project.
About Provident Protection Plus
For more than 65 years, Provident Protection Plus has served businesses and residents across several states nationwide. Today, we are a wholly owned subsidiary of Provident Bank, the region’s premier banking institution. To learn more about our coverage options, contact our specialists today at (888) 990-0526.