Do I need builders risk if my contractor has it?

Your contractor's policy covers their liability and tools — it does not cover your structure or materials. As the property owner, you need your own builders risk policy to protect your investment during construction.

Does my homeowners cover a renovation?

Standard homeowners policies typically exclude coverage for structures under construction. Once work exceeds a certain threshold — often $5,000–$10,000 — you need a separate builders risk policy. Check with your agent before starting any major project.

How long does a builders risk policy last?

Builders risk policies are typically written for 3, 6, or 12 months. They can usually be extended if your project runs long. Coverage ends when the structure is occupied, put to its intended use, or the policy expires — whichever comes first.

What does builders risk insurance cover?

A builders risk policy covers the structure under construction, materials on-site, and materials in transit to the job site. It protects against fire, wind, hail, theft, vandalism, and other named perils. Soft costs like architectural fees and loan interest can often be added as an endorsement.

How much does builders risk insurance cost in Minnesota?

Cost is typically based on the completed value of the project — usually 1–4% of the total construction cost annually. A $300,000 new build might cost $1,500–$6,000 for a 12-month policy. We shop multiple carriers to find the best rate for your specific project.

Builders Risk Insurance — Minnesota

While your home is being built,
it is completely unprotected.

Standard homeowners insurance covers your existing home — not a structure under construction. Your contractor's general liability covers injuries and negligence — not damage to the building itself. Builders risk fills the gap from groundbreaking to occupancy.

Estimate My Rate Talk to an Agent

🏗️

New construction and major renovations

🔨

Materials on-site and in transit covered

🏠

Local agency — Chaska, MN since 2011

You have spent months planning. A framing fire, a windstorm, or a weekend of theft should not send you back to square one.

Construction sites are vulnerable. Wind and hail damage exposed framing. Thieves steal copper wire and appliances. Fire destroys weeks of work in hours. And in Minnesota, winter weather can wreck an unenclosed structure before you are ready to close it in.

Framing fire destroys three weeks of work
Windstorm tears off the new roof before sheathing is on
Appliances and materials stolen from the job site over the weekend
Water damage before the building is enclosed
Freeze damage as the project extends into cold months

Builders risk is a temporary policy that covers the project from when construction starts until occupancy begins — then standard homeowners takes over. Most lenders require it before releasing construction loan funds.

Does your contractor's policy cover you?

Maybe — but verify. Ask to see the certificate of insurance. Confirm your project is specifically covered, you are named as an additional insured, and limits are adequate. If there is any doubt, your own policy ensures you are protected.

Coverage

What builders risk insurance covers

🏗️

The Structure

The building as it is being constructed — foundation, framing, roofing, electrical, plumbing, HVAC, and finishes. If a fire destroys the framing, the policy pays to rebuild it.

🔨

Materials On-Site

Lumber, drywall, fixtures, appliances, and anything else stored on the job site — covered against theft, vandalism, and weather damage.

🚚

Materials in Transit

Most policies cover materials while being transported to the job site. If a delivery truck is in an accident and your cabinets are destroyed, you are covered.

🔥

Fire and Weather

Wind, hail, lightning, fire, and smoke — the most common Minnesota construction losses. Coverage follows the structure from day one.

📋

Soft Costs (Optional)

Loan interest during delays, architectural fees for redesign, permit fees if plans change. Valuable on longer projects where delays have real financial consequences.

🗑️

Debris Removal

If a covered loss occurs, the cost to remove debris before rebuilding can continue is covered.

📋

Minnesota Builders Risk Insurance Checklist

Verify contractor coverage, document your project, and prepare for your builders risk quote.

Download Free Checklist →

Minnesota Construction Risks

Why Minnesota builds carry unique risk

Short building season

Minnesota's building season is compressed. Projects race against the weather to get enclosed before winter. Delays push timelines into high-risk months — make sure your policy term is long enough and can be extended.

Wind and hail

Summer storms can destroy exposed framing, tear off partial roofing, and flood unenclosed structures. Wind and hail are covered perils under standard builders risk.

Theft from job sites

Construction sites are targets for theft, especially in rural and semi-rural areas where sites may be unattended for days. Copper wire, appliances, and materials are commonly stolen.

Freeze damage

If your project extends into cold months before the building is enclosed and heated, freeze damage is a real risk. Make sure your policy covers this exposure and verify the policy term covers your full timeline.

Quick Rate Estimate

What does builders risk insurance cost?

Most residential projects run $1,500–$6,000 per year. Answer four questions to estimate your range.

How It Works

Three steps to protecting your project

Tell Us About Your Project

New construction or renovation, estimated value, timeline, location, and who is involved. We need this before you break ground — not after something goes wrong.

We Find the Right Coverage

We work with multiple carriers that offer builders risk coverage. We match your project to a policy that fits — including coordination with your existing homeowners policy for renovations.

Transition to Permanent Coverage

When construction is complete and occupancy begins, builders risk ends. We help you transition to standard homeowners coverage with no gap.

Frequently Asked Questions

What builders and homeowners ask us most

Maybe not — but verify. Ask to see the certificate. Confirm your specific project is covered, you are named as additional insured, and limits are adequate. If there is any doubt, your own policy protects you.

Partially. Your existing home remains covered, but the renovation work and new materials are typically not fully covered. Major renovations may trigger exclusions or require notification to your insurer.

Policies are written for 3, 6, or 12 months. If construction runs longer — common in Minnesota due to weather — you need to extend before it expires. Do not let coverage lapse mid-project.

Coverage typically ends at project completion, occupancy, policy expiration, or sale — whichever comes first. Have permanent property insurance in place before builders risk ends.

Theft is typically covered, subject to your deductible. Some policies have sublimits for theft or require specific security measures. Review your policy and take reasonable precautions.

Faulty workmanship itself is not covered — that is between you and the contractor. But if faulty work leads to a covered peril such as water damage, the resulting damage may be covered.

Get Your Quote

Break ground with confidence. Your investment is protected.

We cover your project from day one and transition you to permanent coverage when construction is complete.

New construction and major renovations
Materials on-site and in transit
Policy terms from 3 to 12 months
Coordination with existing homeowners coverage
Lender-required coverage available

Start your free quote

Fill out the form and an agent will be in touch within one business day.

The most common mistake I see is homeowners who assume their contractor's policy covers them — and find out it does not after something goes wrong.

For renovations specifically, the coordination between the builders risk policy and your existing homeowners coverage matters. I make sure there is no gap.

Featured Agent

Janel Morris

Personal Lines Agent

Builders risk is one of those coverages that homeowners do not think about until they need it. By then it is too late. I work with new construction projects all across Carver County and I make sure the policy term covers the full timeline — including a buffer for the delays that are almost inevitable in Minnesota.

(952) 392-9508 Email Janel

👥 Meet the full Options Insurance team →

While your home is being built,it is completely unprotected.