If you’re building a new home or starting a major renovation on the Mississippi Gulf Coast, you’ll likely hear the term Builder’s Risk Insurance. This coverage is essential during construction and protects against risks that standard homeowners or contractor policies don’t fully cover.
What Is Builder’s Risk Insurance?
Builder’s Risk Insurance—sometimes called course of construction coverage—is a specialized policy that protects buildings under construction or renovation. It covers the structure itself, materials, and sometimes even temporary structures on-site.
This policy is critical for anyone involved in a project, including:
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Homeowners building on their lot.
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Contractors and subcontractors working on residential or commercial projects.
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Developers and builders managing larger construction jobs.
What Does Builder’s Risk Insurance Cover?
While coverage can vary by policy, most Builder’s Risk policies include protection against:
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Fire and Lightning – Common hazards during construction.
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Theft and Vandalism – Materials and tools are prime targets on job sites.
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Weather Damage – Wind, hail, or severe storms are major concerns on the Gulf Coast.
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Explosion or Collapse – Accidents that occur during construction.
What Builder’s Risk Insurance Usually Does Not Cover
It’s important to know the limits of the policy. Most Builder’s Risk Insurance does not include:
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Earthquake or Flood Damage – These usually require separate policies.
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Normal Wear and Tear – Expected deterioration is excluded.
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Workmanship or Design Errors – Faulty work or materials aren’t covered.
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Employee Injuries – That falls under workers’ compensation.
Why Is Builder’s Risk Insurance Important on the Gulf Coast?
In Biloxi and surrounding coastal areas, severe weather is a constant risk. Without proper coverage, a hurricane or tropical storm could set back a construction project by months—and cost thousands out of pocket. For example, local builders like McMurphy Homes often encourage their clients to secure Builder’s Risk coverage before breaking ground, ensuring both the homeowner and the builder are financially protected if a storm or theft occurs during construction.
Frequently Asked Questions About Builder’s Risk Coverage
What’s the difference between Builder’s Risk and General Liability?
Builder’s Risk covers the property and materials during construction, while General Liability protects against third-party injuries and damages. Most contractors need both.
Do I need Builder’s Risk if my contractor has insurance?
Yes. A contractor’s insurance often won’t cover your property itself—it covers their liability. Builder’s Risk ensures the structure and materials are protected.
How long does Builder’s Risk coverage last?
Typically, until the project is complete or the property is occupied. Policies are usually written for 3, 6, or 12 months and can be extended if construction runs longer.
Protect Your Project With McMurphy Insurance
Whether you’re a homeowner building your dream house or a contractor managing multiple projects, McMurphy Insurance in Biloxi can design a Builder’s Risk policy tailored to your needs.
👉 Call us today or request a free quote online to safeguard your construction project.
