What is “Builder’s Risk Insurance”?

Any reputable home builder should provide both workers compensation and liability insurance coverage as part of the building agreement for a new home. Customers shouldn’t just assume this, however. We encourage all new home construction customers to ask their builders for worker’s compensation clearance letters to assure that coverage is in place and that the builder is in good standing. Customers should also ask for certificates of liability insurance. Given the nature of the construction industry, and heightened levels of risk for employees on site, the minimum you should expect would be $2,000,000.00 of liability coverage.

Worker’s Compensation covers injuries to workers on your job site, no matter the cause or outcome all parties are covered. If someone gets hurt while building your home, you want to make sure you aren’t legally vulnerable, and that work won’t be held up during that process.

Liability insurance offered by your builder provides coverage for any damages as a result of errors or omissions on the part of your builder, his employees or subcontractors. Acts of God, on the other hand, such as windstorms and lightning strikes aren’t considered the builders responsibility or fault, but they also are covered by the homeowners liability in case of damage to the home as a result of their occurance.