Who Needs Builders Risk Insurance: Contractor, Owner or Lender? 

Skipping builders risk insurance on a construction project is a financial gamble that can cost far more than the premium ever would. In Georgia, where unforeseen risks can disrupt a job site at any stage, an uninsured loss can leave contractors, owners and lenders absorbing costs they never planned for.

Who Is Typically Responsible for Coverage?

The responsibility for builders risk insurance may depend on how the project contract is written:

• Property owners may purchase coverage on residential builds or renovations, particularly when acting as their own general contractor.
• General contractors may be contractually required to secure the policy and list the owner and lender as additional insureds.
• Lenders may ask for proof of coverage before releasing funds.

Because contracts vary widely, all parties should review their agreements before breaking ground. An unresolved coverage gap between a contractor and an owner can lead to significant financial exposure.

Why Is Builders Risk Insurance Important?

A construction project faces risks that standard property insurance may not typically cover. Builders risk insurance is designed to fill that gap. Policies can cover damage to materials, fixtures and equipment on-site from fire, theft, vandalism and certain weather events.

How Can We Help You?

Kite Insurance Agency works with contractors, property owners and lenders in Georgia to identify the right builders risk insurance policy for each project. Our team can review your contracts, explain lender requirements and help you secure coverage that meets your needs.

Contact us today to discuss your options and request a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.