Builder's risk insurance is a specialty property insurance policy that covers a building under construction (and often materials staged on site) against direct physical loss from fire, lightning, theft, vandalism, wind, hail, and similar perils. It is typically written on a project-by-project basis and runs from project start through substantial completion or beneficial occupancy.
Builder's risk is almost always required by lenders on financed construction projects. The premium typically runs 0.1% to 0.4% of the construction value depending on project type, location, and coverage scope. Either the owner or the GC procures the policy depending on contract terms; named insureds typically include both.