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Oracle RMS Insurance

Builder's Risk Insurance

Commercial Insurance — Oracle RMS Insurance

Builder's Risk Insurance

Protect your construction project — structure, materials, and equipment — from the first shovel to final occupancy.

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Builder's risk insurance (also called course of construction insurance) covers a building or structure while it is under construction. It protects the project owner, general contractor, and subcontractors against physical loss or damage to the structure, materials on site, and materials in transit. Standard property policies do not cover buildings under construction, making builder's risk essential for any new build, renovation, or major addition.

Who needs this coverage?

Property developers, general contractors, home builders, renovation contractors, and project owners all have an insurable interest in a construction project. Builder's risk coverage can be arranged by the owner or the general contractor, and should be in place before construction begins.

Key coverages

  • Structure under construction
  • Materials and supplies on site
  • Materials in transit to the site
  • Temporary structures and scaffolding
  • Fire, lightning, and explosion
  • Theft and vandalism
  • Wind, hail, and water damage
  • Collapse during construction
  • Soft costs (architect fees, permits, financing)
  • Delay in completion (optional)

Frequently Asked Questions

What does builder's risk insurance cover?
Builder's risk covers the structure under construction and materials on site or in transit against perils such as fire, theft, vandalism, wind, hail, and water damage. It can also be extended to cover soft costs like architectural fees, permit costs, and financing charges incurred due to a delay.
Who purchases builder's risk insurance — the owner or the contractor?
Either the project owner or the general contractor can purchase builder's risk coverage. The policy should name all parties with an insurable interest, including the owner, GC, and lender. It is important to clarify responsibility in the construction contract before work begins.
When does builder's risk coverage start and end?
Coverage typically begins when construction starts (or materials are first delivered to site) and ends when the project reaches substantial completion, is occupied, or the policy term expires — whichever comes first. The policy should be in place before any work begins.
Does builder's risk cover subcontractor errors?
Builder's risk covers physical loss or damage to the project. It does not cover the cost to redo faulty workmanship itself, but it may cover resulting damage to other parts of the structure. Professional liability or contractor's errors and omissions coverage addresses workmanship defects.
Is builder's risk different from home insurance?
Yes. Standard home insurance policies exclude buildings under construction. A builder's risk policy is specifically designed for the construction phase. Once the project is complete and occupied, a standard property policy takes over.

Ready to review your coverage?

Speak with a licensed broker at Oracle RMS — by phone, video, or in person. We serve businesses across Canada.*

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* Commercial insurance services available across Canada, excluding Quebec.