Who buys builders risk insurance?
It is usually bought by the owner of the building but the general contractor constructing the building may buy it if it is required as a condition of the contract. Renovations & Remodeling If the project involves renovations or additions to an existing building, the owner’s existing property insurance may cover the work under construction, obviating the need for builder’s risk insurance. (Policies vary.) However, in the case of new buildings under construction on vacant sites, the owner may not have an existing policy that provides coverage. Your lender will require a builder’s risk policy to be in force prior to loan closing. If you already own the land, you should have one in force even before the loan closes. If you have started construction, even if you have a pile of sand or dirt on the property, or a hole for the basement dug, you are vulnerable to loss. I don’t mean to scare you, but I know of two separate instances where children playing on the construction site were fatally in
