What is Builder’s Risk Insurance?
Builder’s risk insurance, also known as builder’s insurance, is a form of property insurance that protects structures under construction, renovation, or repair. It provides coverage for physical damage to the building, as well as the materials and equipment on-site.
Typical coverage includes:
- Fire and smoke damage
- Theft and vandalism
- Wind, hail, and lightning damage
- On-site materials and equipment losses
- Construction delays caused by covered incidents
Many Ontario municipalities require or recommend builder’s risk insurance before issuing construction or renovation permits under the Ontario Building Code, making it a key requirement for both residential and commercial projects.
Coverage Options for Your Construction Project
No two construction projects are the same, which is why PetleyHare offers a wide range of coverage options to suit your needs. Here’s what you can expect from a builder’s risk insurance policy:
Property Protection
Covers damage to the building under construction, whether it's a home, office, warehouse, or retail space.
Materials and Equipment
Protects lumber, plumbing, wiring, windows, HVAC systems, and other essential materials stored on-site or in transit.
Temporary Structures
Covers non-permanent features such as fencing, scaffolding, signage, and storage units used during the build.
Theft and Vandalism
Provides reimbursement for stolen tools or materials and covers costs related to property damage from unauthorized entry.
Storm Damage
Offers protection from storms, lightning, and high winds.
Soft Costs
Includes coverage for architectural fees, permits, engineering costs, and other non-physical expenses if delays occur after a loss.Delay-Related Losses
Covers financial losses tied to construction delays from covered incidents, such as fines, penalties, or financing issues.
Looking for coverage tailored to contractors? Visit our Contractor’s Insurance page.
What Isn’t Covered by Builder’s Risk Insurance?
Builder’s risk insurance offers strong protection during construction, but every policy has limits. Understanding what may fall outside your builder’s risk insurance coverage helps you plan ahead and avoid surprises. Coverage can vary by insurer, but most builder’s insurance or course of construction insurance policies typically don’t include:
- Wear and tear or gradual deterioration
- Faulty workmanship or design issues (unless added as optional coverage)
- Tools, machinery, or contractor equipment — these often need separate coverage
- Injuries to workers or tradespeople (covered under liability or workplace policies)
- Damage once the project is completed, sold, or occupied
- Losses tied to delays that aren’t caused by a covered event
- Contractual disputes or project management issues
If you’re unsure what applies to your build, our brokers can help you compare builder’s risk insurance providers and explain the differences between builder’s risk coverage and other insurance during construction. Our team can guide you through options such as commercial builders' insurance and tailored protection for custom builds or renovation projects.
Who Needs Builder’s Risk Insurance?
This coverage is not just for general contractors. Builder’s risk insurance is recommended for anyone with a financial interest in a construction project.
Contractors
If you manage a job site or are responsible for work in progress, this insurance helps protect your work and materials against loss or damage.
Property Owners and Homeowners
Building a custom home or adding a major extension to your current property means making a large investment. Builder’s risk insurance ensures that the investment is protected during construction.
Developers
Larger projects involve complex phases, multiple subcontractors, and higher risk. Insurance helps you manage delays, losses, and on-site issues more efficiently.
Subcontractors
Tradespeople such as electricians, plumbers, and roofers often supply their own tools and materials. Builder’s risk insurance helps protect the builder’s contributions until the project is complete.
If your role involves managing or contributing to a build, you need protection in place before the first material is delivered.
When Should You Purchase Builder’s Risk Insurance?
Builder’s risk insurance should be secured before construction begins. In most cases, the policy becomes active on the date construction is scheduled to start and remains in place until the project is completed, sold, or handed over to the owner. If your project is already underway, don’t worry. Our brokers can work with you to get coverage in place quickly.
Why Choose PetleyHare for Builder’s Risk Insurance?
We’ve been helping builders and property owners in Ontario protect their projects for more than 100 years. At PetleyHare, you get more than just a policy. You get a partner who understands local construction challenges and cares about getting it right. As an independent brokerage, we compare multiple insurer options to find the best price and coverage for your specific project needs.
- Local experience from a family-owned brokerage
- Offices in Oshawa and Port Perry for in-person support
- Access to multiple insurers to find you the best fit and price
- Personalized service with a focus on clear communication and fast turnaround
- Custom coverage designed around your specific build type and timeline
Our Claims Process – Fast & Supportive
If something goes wrong during construction, the last thing you need is red tape. At PetleyHare, we believe in making the claims process as simple and fast as possible.
Step 1: Report your claim
Submit the details, photos, receipts, or other documentation to our team.
Step 2: Adjuster assignment
Your insurer appoints a licensed adjuster to assess the loss and determine the next steps.
Step 3: Assessment and guidance
We walk you through what is covered and help you navigate repair or reimbursement decisions.
Step 4: Vendor coordination or reimbursement
Work with trusted, approved vendors or get reimbursed directly for covered expenses.
Step 5: Ongoing support
Our in-house claims advisor ensures you are supported throughout the process.
Builder’s Risk Insurance FAQs
What Does Builder’s Risk Insurance Cover?
Builder’s risk insurance typically covers damages to the structure under construction, materials on-site, and temporary structures. It protects against risks like fire, theft, vandalism, and certain weather-related events, ensuring the project’s financial security.
Who Needs Builder’s Risk Insurance?
Builder’s risk insurance is essential for property owners, contractors, and developers involved in construction projects. It provides financial protection against potential losses during the building process, safeguarding investments and ensuring project continuity.
Does It Cover Renovations or Additions?
Yes. Builder’s risk insurance is ideal for renovations, remodels, and structural additions, not just new construction.
Does Builder’s Risk Insurance Cover Construction Delays?
Yes, Builder’s Risk Insurance can help cover costs related to project delays caused by covered events, ensuring you stay on track.
How Long Does the Policy Last?
Coverage typically runs for 3, 6, or 12 months, depending on the size and scope of your project. Extensions are available if construction is delayed.
What If My Project Goes Over the Expected Timeline?
You can request a policy extension before the original coverage period ends to avoid any gaps in protection.
Is Builder’s Risk Insurance Necessary if the Contractor Already Has Insurance?
Yes. A contractor’s liability coverage protects their work but may not fully protect your property or materials. Builder’s risk insurance fills that gap.
Can I Combine This With Other Policies?
Yes. Builder’s risk insurance is often bundled with commercial general liability or contractor equipment insurance for broader protection.
Can I Tailor My Builder’s Risk Insurance to the Specific Needs of My Project?
Absolutely. Builder’s Risk Insurance can be customized to fit your project’s unique requirements, ensuring you get the right coverage without paying for unnecessary protection.
How Can I Get Started With Builder’s Risk Insurance From PetleyHare?
Getting started is easy. Request a quote and one of our experienced insurance brokers will walk you through the process, providing you with a tailored solution to protect your construction investment.
Protect Your Project – Get a Quote Today
Builder’s risk insurance gives you peace of mind while your project is underway. Whether you are constructing a new space or making significant upgrades, PetleyHare offers local expertise, fast quotes, and dependable support. Don't leave your project exposed to the unexpected. Get the right protection in place before the first material hits your site. Our team is ready to help you move forward with confidence.
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