Builder's Risk Insurance for New Construction and Renovation Projects in Minnesota
Home base at 261 East Broadway, Monticello
30+ years of combined team experience
Coverage compared across multiple carriers
Ham Lake meetings available by appointment
Who Pays for Builder's Risk — the Owner or the Contractor?
This is the question we hear most often, and the honest answer is: it depends on the contract. Construction agreements vary widely in how they assign responsibility for insuring the project, and a policy purchased by the wrong party — or two overlapping policies with conflicting terms — creates problems when a claim arises.
Our producers review the construction contract as part of the consultation process. We identify who the contract assigns coverage responsibility to, flag any ambiguity, and make sure the policy is structured so the right parties are named and the coverage aligns with the project scope. For homeowners building on their own lot, that conversation often looks different than it does for a commercial developer or a general contractor managing subcontractors.
If you are unsure whether your contractor's policy covers the project or whether you need your own, that is exactly the kind of question a consultation is designed to answer — before the foundation is poured, not after a loss.
Builder's risk insurance — also called course of construction insurance — covers a structure while it is being built or significantly renovated. It applies from the moment materials arrive on site until the project reaches completion and permanent coverage takes over. Property owners building a new home, contractors managing commercial builds, and developers overseeing multi-phase projects all have a legitimate interest in this coverage.
The policy protects the structure itself, materials stored on site, and in many cases temporary structures like scaffolding and fencing. Without it, a fire, windstorm, or other covered event during construction leaves the project exposed at the moment it is most vulnerable — before a permanent commercial property policy or homeowners policy can be bound.
We work with builders risk insurance Minnesota carriers across multiple markets, which means we can compare policy terms, coverage triggers, and exclusions rather than presenting a single option as the default.
What Is Builder's Risk Insurance and Who Needs It?
What Does Builder's Risk Insurance Cover?
A standard builder's risk policy covers physical loss or damage to the structure and materials during the construction period. Coverage typically includes damage from fire, lightning, wind, hail, and vandalism. Many policies also include theft of materials from the job site, which matters on projects where lumber, copper, HVAC equipment, and appliances are staged on site well before installation.
Coverage commonly addressed in a builder's risk policy includes:
- The structure under construction, including additions and renovations
- Building materials and supplies stored on site or in transit to the site
- Temporary structures used during the project
- Theft of materials before they are incorporated into the build
- Weather-related damage during the construction period
- Soft costs in some policies, such as architect fees, permit costs, and financing expenses incurred because of a covered delay
What builder's risk does not cover is equally important to understand. Contractor tools and equipment, workers' compensation obligations, and general liability for third-party injury are separate lines of coverage. We review those gaps during the consultation and make sure the full picture is addressed.
Hosting retirement planning seminars and Social Security classes throughout Clearwater, St. Petersburg, Largo, Palm Harbor, and the greater Tampa Bay area.
Many people start by attending a class to understand how Social Security works before making decisions.
Classes explain timing, income, and how benefits fit into retirement planning.
Common Questions About Builder's Risk Insurance
What does builder's risk insurance cover in Minnesota?
A builder's risk policy covers the structure under construction and materials on site against physical loss from fire, wind, hail, theft, vandalism, and similar covered causes. Soft costs such as permit fees and architect expenses may also be included depending on the policy form. Coverage applies from the project start date through completion, at which point a permanent property policy takes over.A builder's risk policy covers the structure under construction and materials on site against physical loss from fire, wind, hail, theft, vandalism, and similar covered causes. Soft costs such as permit fees and architect expenses may also be included depending on the policy form. Coverage applies from the project start date through completion, at which point a permanent property policy takes over.When does builder's risk insurance start and end?
Coverage typically begins when materials are first delivered to the site or when construction commences, depending on how the policy is written. It ends at project completion — usually defined as when the structure is occupied, accepted by the owner, or a specified number of days after construction is finished. Planning the transition to permanent coverage before that end date is part of our consultation process, so there is no gap between building and occupancy.Coverage typically begins when materials are first delivered to the site or when construction commences, depending on how the policy is written. It ends at project completion — usually defined as when the structure is occupied, accepted by the owner, or a specified number of days after construction is finished. Planning the transition to permanent coverage before that end date is part of our consultation process, so there is no gap between building and occupancy.Does builder's risk cover theft of materials from the job site?
Many builder's risk policies include theft coverage for materials stored on site, but the terms vary by carrier and policy form. Some policies exclude theft entirely or apply sublimits to certain material categories. We compare options across multiple carriers to find policies where theft coverage aligns with what is actually staged on your site.Many builder's risk policies include theft coverage for materials stored on site, but the terms vary by carrier and policy form. Some policies exclude theft entirely or apply sublimits to certain material categories. We compare options across multiple carriers to find policies where theft coverage aligns with what is actually staged on your site.Can a homeowner building on their own lot get builder's risk insurance?
Yes. Homeowners who are owner-building or who have hired a general contractor to build a new home on their lot are eligible for builder's risk coverage. The policy structure may differ from a commercial construction policy, and the question of whether the owner or contractor carries the policy depends on the construction contract. We work through that with you during the consultation.Yes. Homeowners who are owner-building or who have hired a general contractor to build a new home on their lot are eligible for builder's risk coverage. The policy structure may differ from a commercial construction policy, and the question of whether the owner or contractor carries the policy depends on the construction contract. We work through that with you during the consultation.How is builder's risk different from contractor insurance?
Builder's risk covers the project itself — the structure and materials — against physical loss during construction. Contractor insurance typically refers to general liability and inland marine coverage that protects the contractor's operations, tools, and third-party liability. Both are often needed on the same project, and they work alongside each other rather than overlapping.Builder's risk covers the project itself — the structure and materials — against physical loss during construction. Contractor insurance typically refers to general liability and inland marine coverage that protects the contractor's operations, tools, and third-party liability. Both are often needed on the same project, and they work alongside each other rather than overlapping.
Plan the Transition Before the Project Ends
One of the most common gaps we see is a builder's risk policy that expires or is cancelled at completion without a permanent property policy already in place. For a commercial build, that means a finished structure sitting uninsured while final inspections and occupancy approvals are processed. For a homeowner, it can mean a new home without coverage on move-in day.
We plan the handoff from construction to permanent coverage as part of the same conversation. Whether the project transitions to a commercial property policy or a homeowners policy, we coordinate the timing so coverage is continuous. That planning starts during the consultation — not as an afterthought when the project is wrapping up.
If you are starting a new construction or renovation project in Minnesota and want to understand your builder's risk options, contact us to schedule a consultation.
Prefer to talk now? Call us at
(763) 432-2645.
