Builder's Risk Insurance

Intermediate 🏠 Real Estate

Definition

Coverage for properties under construction against damage or loss—the construction equivalent of 'hope for the best, insure for the worst.'

Example Usage

The builder's risk insurance protected the project against fire, theft, and weather damage during construction.

Origin

Insurance terminology, formalized in the early 1900s

Fun Fact

Builder's risk policies are why construction projects don't end in total financial disaster when a storm hits.

Source: Insurance Institute Standards

Related Terms

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