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Home > Blog > Do I Need Builders Risk Insurance on a DIY Project?
TUESDAY, MARCH 23, 2021

Do I Need Builders Risk Insurance on a DIY Project?

When you buy insurance of any kind, you must consider how much you want your policy to assist you. For example, when buying homeowners insurance, you must consider what losses you want your plan to pay for, and which costs you are better off handling yourself. This require periodic reviews of your policy and certain increases in coverage. a man riding a skateboard up the side of a building

One time when you will need maximized property insurance benefits is when you are undertaking DIY maintenance on your own property. However, you might find that you need a specific benefit known as builder’s risk insurance, in contrast to standard home insurance. It’s there to help you because property under construction is a lot different from the average home. Here’s how it works. 

Understanding Builder’s Risk Insurance  

Making home improvements is going to take time and cost money. Whether large- or small-scale, these changes will add value to the home, and sometimes will necessitate an increase in your homeowners insurance limits. However, while the work is in progress, you might need the added benefit of builder’s risk insurance. Your homeowners insurance by itself usually won’t cover construction in progress.  

Builder’s risk policies are designed specifically for insuring construction projects, including their materials and equipment, against unexpected, unavoidable losses. Therefore, even in DIY construction scenarios, this coverage might prove necessary. For example, if a fire were to gut your bathroom remodel, then you’re probably going to face a financial setback. Builder’s risk coverage will ensure you get the necessary compensation to get the project back on track.  

In many cases, builder’s risk insurance won’t be necessary if you are simply taking on a small project, such as building a doghouse or laying out a new garden. However, large-scale DIY projects, such as significant remodels or new home construction will often necessitate this benefit. These are far too important of investments to risk losing.  

Additionally, there are times where even personal projects might have a builder’s risk insurance requirement. This need might arise when you:  

  • Take out a construction loan   

  • Build a project for a client   

  • Add on to a building still under mortgage   

  • Building on rented property   


If these transactions involve third parties—clients, lenders, landlords—then it is usually they who will institute the coverage requirements. However, if you are the sole party involved in the project, you have free reign to choose your benefits. Still, the importance of builder’s risk insurance cannot be understated, especially when you are taking on a massive project by yourself.
Posted 5:30 PM

Tags: builders, risk, insurance, coverag, diy
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