Builders Risk vs Property Insurance | Summit Cover

August 5, 2023

Insurance can help protect the valuable investments you hold dear whether they belong to homeowners or businesses alike, whether that means protecting homes and properties or running businesses. Two common forms of coverage for construction and property management operations are Builders Risk and Property Insurance policies. In this article, we'll delve into the nuances of builders risk vs property insurance, helping you understand their differences and how they can safeguard your interests.

What is Builders Risk? Unveiling the Basics

Before we delve into the comparison, let's shed light on the concept of Builders Risk insurance. Builders Risk insurance, as the name implies, is designed to protect properties during the construction or renovation phase. It provides coverage for damage or loss to the structure and materials of a building project. This type of insurance is temporary and terminates once the project is completed. Builders Risk insurance is essential for contractors, property developers, and even homeowners overseeing significant construction on their premises.

Exploring Property Insurance: Safeguarding Your Asset

Property Insurance, also referred to as Homeowner's Insurance, provides more comprehensive and long-term protection. Property insurance goes beyond construction phase protection to encompass protection for both building structures and contents from perils such as fire, theft, vandalism and natural disasters - an essential investment for those wanting long-term peace of mind when owning and leasing properties. Property Insurance should be an indispensable tool in protecting assets long term for both landlords and home buyers alike. Read more: who pays for builders risk insurance

Builders Risk vs Property Insurance: The Key Differences

Important key differences for builders risk and property insurance are explained in detail:

1. Scope of Coverage

Builders Risk insurance focuses exclusively on the risks associated with the construction phase. It covers damages to the building materials, supplies, and the structure itself while the construction is ongoing. On the other hand, Property Insurance offers broader coverage that extends to perils beyond construction, ensuring the safety of your property even after the construction dust settles.

2. Duration of Coverage

Builders Risk insurance is temporary and typically ceases once the construction project concludes. In contrast, Property Insurance is an ongoing coverage that provides protection for the entire lifespan of the property, as long as the premiums are paid.

3. Applicability

Builders Risk Insurance provides protection for contractors, builders and property owners engaged in construction projects while Property Insurance covers homeowners, landlords and investors who want comprehensive protection for their real estate investments.

Selecting the Appropriate Coverage

Your decision between Builders Risk and Property Insurance depends entirely upon your unique situation. If you are working on a construction project, Builders Risk insurance provides financial security in case of unexpected damages to the project itself; conversely if you want long-term protection for your home and its contents, Property Insurance provides peace of mind. Read more: builders risk insurance cost


Builders Risk vs Property Insurance - two distinct forms of coverage with distinct functions. Builders Risk insurance protects projects during construction while Property Insurance serves to safeguard existing investments. Evaluate your requirements, consider what investment type suits your investment best, and select an insurer accordingly - no matter whether raising new structures or protecting existing investments - the appropriate policy coverage ensures your investments will stay protected no matter the situation.

Latest articles.