Builder’s risk from groundbreaking to finish.
Coverage for a building while it’s under construction or major renovation, including materials on site and in transit, for property owners and contractors.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
The months other policies exclude
A building under construction faces risks a finished one doesn’t: fire, theft of materials, vandalism and weather damage to open framing.
Builder’s risk covers the project itself for the length of construction. It doesn’t replace the contractor’s liability or workers’ comp.
- The structureThe building under construction, typically valued at completed value.
- MaterialsSupplies on site, in storage and in transit, depending on the policy.
- TermWritten for the project, commonly extendable if construction runs long.
- Not includedContractor liability, workers’ comp and usually tools and equipment.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Project: address, scope and construction type.
- Value: completed value and existing structure value if renovating.
- Timeline: start date and expected completion.
- Builder: licensed contractor or owner-builder.
- Security: fencing, cameras and site protection.
- Lender: construction loan requirements.
Builder’s risk, answered
Do I need builder’s risk insurance to build an ADU?
Often, yes. An ADU is new construction, and your homeowners policy may not cover the structure and materials while it’s being built. A builder’s risk policy covers the ADU during construction, and your lender or contractor may require one.
Who buys builder’s risk, the owner or the contractor?
Either, depending on the contract. The construction contract usually says who is responsible.
Does builder’s risk cover the contractor’s tools?
Usually not. Tools and equipment are generally insured separately by the contractor.
When does coverage end?
Commonly when the project is completed, occupied or put to its intended use, depending on the policy.
Is earthquake covered?
Often excluded or available only by endorsement. Ask if you need it.
Do you offer builder’s risk insurance outside California?
Yes. Clients across the country send the same quote form. California policies are placed directly; outside California the request is handled together with a partner agency in your state, and the shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Send the project details before you break ground.
Address, scope, value and timeline are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued. Some policies may be placed with nonadmitted (surplus lines) insurers, which are not members of the California Insurance Guarantee Association (CIGA).
A short video from Sam
Under a minute each. Videos use an AI-generated version of Sam’s likeness and voice. General information only; coverage depends on your policy.
Tell me how to reach you. I’ll take it from there.
Takes about 30 seconds. I review every request personally and call you back, usually the same day.
(424) 552-4545Answered 24/7 · CA License #4348151
Get a reminder before your renewal.
Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.