Coverage for Properties Under Construction or Temporarily Unoccupied
Properties under construction, renovation, or vacancy may face exposures that are not adequately addressed by a standard commercial property policy.
Builders risk and vacant property insurance are separate types of coverage:
- Builders Risk Insurance generally addresses eligible property during construction or
renovation. - Vacant Property Insurance generally addresses eligible existing buildings that are temporarily unoccupied.
The appropriate coverage depends on the property’s condition, occupancy, intended use, project details, and carrier underwriting requirements.
Builders Risk Insurance
Builders risk insurance may help protect eligible buildings, construction materials, and certain property while a structure is being built or renovated.
Depending on the policy, coverage may apply to:
- Buildings under construction
- Eligible renovation projects
- Construction materials and supplies
- Materials stored at the project location
- Certain materials in transit or stored off-site
- Fixtures and equipment intended to become part of the building
- Covered losses involving fire, theft, vandalism, wind, or other specified causes
Flood, earthquake, faulty workmanship, design defects, equipment breakdown, delay-related expenses, and other exposures may be excluded or may require separate coverage
Who May Need Builders Risk Insurance?
Builders risk insurance may be relevant to:
- Property owners
- General contractors
- Developers
- Homebuilders
- Commercial building owners
- Real estate investors
- Businesses renovating a property
- Lenders or other parties with a financial interest in the project
Construction contracts and lending agreements may determine who is responsible for obtaining coverage and which parties must be included in the policy.
When Vacant Property Coverage May Be Relevant
Vacant property insurance may be considered when a building is:
- Awaiting sale or lease
- Between tenants
- Temporarily closed
- Held by a real estate investor
- Scheduled for future occupancy
- Awaiting renovation or redevelopment
Properties undergoing major structural renovations, scheduled for demolition, or being actively constructed may require a different type of policy.
Information Commonly Requested
A property owner or business may be asked to provide:
- Property address and intended use
- Construction type
- Occupancy status
- Description and scope of work
- Construction or renovation cost
- Completed property value
- Project start and completion dates
- Percentage of work completed
- General contractor information
- Fire protection and security measures
- Condition and age of the building
- Expected period of vacancy
- Plans for sale, lease, occupancy, or redevelopment
- Prior insurance and claims history
- Mortgagee or lender requirements
Policy Term and Coverage Transitions
Builders risk and vacant property policies may be written for limited terms. Coverage should be reviewed when:
- Construction begins or ends
- The project scope or value changes
- Renovations are suspended
- The property becomes occupied
- Ownership changes
- The property is sold or leased
- The building’s intended use changes
Coverage should be coordinated before the property transitions from construction or vacancy to regular occupancy.
Request a Commercial Insurance Review
Helga Rivera Insurance works with property owners, contractors, developers, and eligible businesses to review the condition and intended use of a property and evaluate available coverage options.
Request a Commercial Insurance Review
Call (571) 743-0156
Insurance availability, pricing, limits, policy terms, and eligibility are subject to property characteristics, project details, carrier guidelines, application requirements, inspections, and underwriting approval.
