Builder’s Risk Insurance in New Jersey

Construction projects face risks long before a building is finished. Fire, theft, vandalism, severe weather, and other covered events can damage a structure, building materials, or equipment during construction and potentially lead to significant financial losses.

Schumacher Insurance Agency helps contractors, property owners, developers, and businesses throughout New Jersey explore builder’s risk insurance designed to protect eligible construction and renovation projects while work is in progress.

Builder’s risk insurance is a specialized type of property coverage designed for buildings and structures while they are under construction. Depending on the policy, coverage may apply to new construction as well as qualifying renovations, remodeling projects, and improvements to existing buildings.

Policies vary considerably, which makes it important to understand exactly what property, project phases, and causes of loss are covered.

Coverage depends on the individual policy, but builder’s risk insurance may provide protection for:

• Buildings and structures under construction
• Building materials and supplies
• Materials stored at the construction site
• Certain materials temporarily stored off-site
• Property in transit to the project
• Damage caused by certain covered weather events
• Fire, theft, and vandalism when covered by the policy

Coverage limits, exclusions, deductibles, and requirements vary by policy and project.

Builder’s risk coverage may be appropriate for a variety of residential and commercial construction projects, including:

• Property owners building a new home or commercial property
• General contractors
• Developers
• Businesses expanding or renovating existing facilities
• Property investors completing major renovations
• Organizations undertaking substantial construction projects

Responsibility for purchasing coverage may depend on the construction contract and project structure. Reviewing insurance requirements before construction begins can help identify potential gaps.

Builder’s risk isn’t limited to ground-up construction. Coverage may also be available for qualifying renovations, additions, remodeling projects, and improvements to existing properties.

Renovation projects can create exposures that a standard property insurance policy may not fully address. Schumacher Insurance Agency can help determine what type of coverage may be appropriate based on the scope and value of the project.

Every construction project is different. Project value, construction type, materials, location, timeline, and the parties involved can all affect insurance needs.

Schumacher Insurance Agency works with New Jersey contractors, developers, property owners, and businesses to help identify project-specific exposures and explore builder’s risk coverage options.