Insurance for buildings under renovation.

Builder’s risk and liability for owners renovating an existing building, plus coverage on the parts that already stand, so the old structure and the new work are both insured while crews are on site.

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What owners renovating buildings usually carry

Renovation builder’s risk
Existing building coverage
General liability, $1M / $2M
Soft costs and delay
Materials on site and in transit
Umbrella

Watch for these in a renovation

The existing structureMany builder’s risk forms insure only the new work. The walls, roof, and floors already standing need coverage too, from your property policy or a renovation form.
Materials on siteMost property policies exclude theft of building materials not yet installed. Builder’s risk can cover them, sometimes with its own limit.
When coverage endsBuilder’s risk usually ends soon after the building is occupied or put to use. Move it to a regular property policy before tenants move in.
Owner as builderIf you act as your own general contractor, a premises liability policy may not cover the construction work. You may need a contractor’s liability policy.
Contractor certificatesCollect certificates from every contractor before work starts, naming you as additional insured for ongoing and completed operations.

What lenders and contractors ask owners renovating buildings for

Builder’s risk naming the lenderConstruction lenders want the full completed value insured, with them as mortgagee or loss payee.
Owner-bought builder’s riskMany construction contracts make the owner buy the builder’s risk and name the contractor and subs on it.
Waiver of subrogationConstruction contracts usually include a mutual waiver for losses the builder’s risk covers.
Delay coverageLenders may ask for soft costs and lost rent if a covered loss pushes back completion.

Questions owners renovating buildings ask

Straight answers.

The questions we hear most, answered plainly.

Does my property policy cover the building during a renovation?

Sometimes, but many carriers limit it or want to know first. Standard forms do not treat a building under renovation as vacant, but theft of materials and the new work itself are often not covered.

Who buys builder’s risk, the owner or the contractor?

Whoever the contract says. On renovations the owner often buys it, since the owner already insures the building. Either way, both names belong on it.

What are soft costs?

Costs beyond materials and labor, such as extra loan interest, permit fees, and design fees, that grow when a covered loss delays the job. Delay coverage can also pay rent you would have collected.