If a home renovation show has you inspired to finally tackle that project you've been putting off this year, listen up. Before you begin, you should be prepared to ask your agent a few questions about your current coverage.

Some background on builder's risk coverage will help you make the right decision for you and your project.

What Is Builder's Risk Insurance?

Builder's risk is a specialized type of property insurance designed for buildings under construction. This could be residential or commercial, renovation or new construction.

It's designed to protect the financial interest property owners, real estate developers, and general contractors have in a construction project. A builder's risk policy addresses coverage that is often not covered by that of the contractor's general liability policy, and the homeowner's policy.

Because every construction project is different, no two builder's risk policies are alike. Generally, however, most builder's risk policies cover property losses due to fire, lightning, hail, explosions, hurricanes, theft, vandalism, and many other risks.

Do I Need Builder's Risk Insurance for a Renovation?

Often, people assume they only need to let their insurance agent know about a new build they're taking on. However, anytime you're planning a renovation or a remodel, you should consider builder's risk insurance. Your homeowner's insurance may not be sufficient in covering building supplies and materials, potentially even including appliances.

Builder's risk insurance can provide peace of mind that your exciting fixer upper project will not cause you significant financial loss. Our role is to understand your project's risks, identify any gaps in coverage, and offer the right solution for you.

Renovations often increase the overall value of your home, sometimes significantly. That's exactly why builder's risk coverage matters. The bigger the investment you're putting into a project, the more exposed you are if something goes wrong mid-construction, before that added value is even realized. A solid builder's risk policy makes sure your project is protected for what it will be worth, not just what it's worth today.