Builders Risk Insurance in Denver, Colorado

Why Denver Construction Projects Need Builders Risk Coverage

Builders risk insurance is specialized property coverage for buildings under construction or major renovation. This policy protects the structure, materials, and equipment at the job site from fire, theft, vandalism, weather damage, and other covered perils during construction. Coverage applies from the start of construction until the project is complete and the permanent property insurance takes effect. Both property owners and general contractors can purchase builders risk, and it's often required by construction contracts and lenders financing projects in Denver and throughout Colorado.

What Does Builders Risk Insurance Cover?

Builders risk covers the building under construction including materials, fixtures, and equipment that will become permanent parts of the structure. It protects against fire, lightning, windstorm, hail, theft, and vandalism. The policy covers materials stored on site, temporary structures used during construction, and debris removal after covered losses. Coverage can include soft costs like extended financing costs, architectural fees, and permit reapplication fees due to delays from covered losses. Some policies cover tools and equipment temporarily at the site.

Benefits of Builders Risk for Colorado Construction Projects

Construction sites face unique risks that standard property policies don't cover, leaving your investment vulnerable during the building phase. Lenders financing construction require builders risk coverage before releasing funds. Materials and equipment at job sites are frequent targets for theft, and Colorado's unpredictable weather—including hail, wind, and sudden storms—can cause significant losses during construction. Builders risk insurance protects your investment until permanent property coverage takes effect.

Who Should Purchase the Builders Risk Policy?

Either the property owner or general contractor can purchase builders risk, depending on the construction contract terms. The policy can name multiple parties as insureds including the owner, general contractor, subcontractors, and lender. Your contract should clearly specify who maintains this coverage and who pays the premium. Our agents can review your construction contracts and help determine the appropriate coverage arrangement.

How Long Does Builders Risk Coverage Last?

Coverage typically lasts for the construction period, often 12 months, with options to extend if needed. The policy terminates when construction is complete, the building is occupied, permanent insurance is bound, or the policy period expires, whichever comes first. For longer projects, we can arrange extended coverage periods or policy renewals to ensure continuous protection throughout construction.

Get a Builders Risk Insurance Quote in Denver, Colorado

Our builders risk insurance agents serve Denver, Colorado and surrounding areas including Aurora, Golden, Lakewood, Thornton, and Westminster. Contact Seguros Ideal Inc today for a free quote.