Contractors can insure their construction projects by buying what is known as builders "all-risk" or "specified perils" insurance policies. Builders policies are meant to protect construction project property by insuring against almost every conceivable risk that a builder could become liable for during the construction. Once the construction is complete, the builders policy ends and separate property insurance must be purchased to cover the completed structure. The policies are generally flexible and can be tailored to meet the needs of each particular project. Like other types of insurance policies, there are always specific types of risks that are excluded from the insurance. Due to the fact that every construction project is different, in terms of the size, type, location and other facts, construction insurance policies can vary greatly in terms of what is covered and how much they cost. This article will give a general overview of what is covered and not covered in a typical construction project insurance policy.

Builders risk insurance covers property for projects under construction, renovation or repair. The insurance policy will generally cover an accidental loss, damage to property, or destruction of property, which can be identified, and which is not specifically excluded from the policy coverage. If there is a claim for damage to a structure during construction, the policy will usually cover both the cost of clean-up and salvage, in addition to the cost to repair the structure and property. Because of the multitude of players in any given project, the policy will usually protect the property owner, the mortgage company, general contractor, and the subcontractors. The policy may even cover the engineers and the architects.