What is Builders Risk ?
Definition of Builders Risk in Construction A term used to describe the insurance that is taken out by either the owner or the contractor to ensure that the project is covered for any losses due to the construction. These losses could include a fire, water damage, mold accumulation, etc. The builders risk is normally increased as the project advances, due to the increasing liability of damages as the project is completed. When there is simply an excavation, the builders risk is minimal, however as the roof is installed, the builders risk becomes more important and substantial. The construction contract will normally indicate whether the owner or the builder is responsible for the builders risk insurance. However, it is extremely important that this is communicated to ensure that the insurance is actually covered by someone.