Five situations where you likely need builder's risk
- A construction loan — the lender requires it and must be named as mortgagee or loss payee.
- A contract that says the contractor provides 'property insurance', 'course of construction' or 'builder's risk' coverage.
- A spec home you are building to sell — you own the risk until it closes.
- A remodel where the owner's homeowner policy will not cover the work or the new materials.
- A rebuild after a fire, where the lot owner's policy no longer covers a structure.
Who buys it under common contracts
| Contract situation | Who usually buys builder's risk |
|---|---|
| Commercial project on an AIA-based owner/contractor agreement | Usually the owner (read the insurance article) |
| Custom home or remodel with a homeowner | Varies — often the contractor; the contract must say |
| Spec home or developer-builder project | The builder/owner |
| Project with a construction loan | Whoever the loan and contract assign it to — the lender will require proof |
Note: If the contract is silent, do not assume the owner has it — ask for proof or buy it.
Dates that matter
- Bind before the first day of work.
- Match the policy term to the schedule plus a cushion for delays — extensions cost more and some markets limit them.
- Tell us before anyone moves in: occupancy usually ends coverage unless the policy allows it.
Get a builder's risk review
Call (858) 925-9555 or request a review online — only your name, phone and email are required; we collect project details by phone. Asena Capital Insurance Services, CA License #6008596.
Frequently asked questions
Do I need builder's risk for a small remodel?
If the contract makes you responsible for the work until completion, or the owner's homeowner insurance excludes it, yes. For small jobs an installation floater may be a better fit — it covers your materials and work until accepted.
Can the homeowner's policy cover a remodel?
Sometimes for minor work. Major remodels, vacancy during the work and additions are often excluded or limited. The homeowner should ask their insurer in writing.
Who is named on the policy?
Usually the owner, the general contractor and subcontractors as their interests may appear, with the lender as mortgagee or loss payee.