Ordinary property insurance may not fit active construction
New construction and major renovation introduce unfinished structures, temporary protection, open walls, changing values and multiple trades. Builder’s risk—also called course of construction insurance—is intended to address insured physical loss to the project during the policy period.
It can be arranged by an owner, developer or contractor depending on the contract. Decide who is responsible before work begins and make all interested parties clear to the insurer.
Define the project and insured value accurately
Provide plans, budget, schedule, existing-structure value and the expected completed value. Identify materials in transit or temporary storage, landscaping, scaffolding, equipment and property belonging to others. Soft costs, delay in opening and testing may require specific coverage and are not assumed.
For renovations, confirm whether the existing building is included and how it is valued. A homeowner should not assume the normal home policy continues unchanged during major work.
Understand the policy period and extensions
Coverage generally has stated start and expiry dates and can end earlier after occupancy, use, completion or another event defined by the wording. Report schedule changes, phased occupancy, vacancy and cost increases before the original assumptions change. Extensions require insurer agreement.
Ask about deductibles and exclusions for flood, earthquake, faulty design or workmanship, testing, theft, water damage and unoccupied sites. Wording varies materially.
Liability and contractor insurance remain separate
Builder’s risk protects project property; it is not a substitute for contractor insurance or commercial general liability. Review wrap-up liability, completed operations, professional design responsibility, automobiles and equipment separately. Contracts should allocate insurance, deductibles and claim responsibilities clearly.
Site controls still matter
Ontario’s Construction Projects Regulation establishes requirements for work within its scope. Use qualified professionals for safety, permits and code obligations. Underwriters may ask about fencing, lighting, alarms, hot-work procedures, water shutoffs, winter heat and after-hours inspections.
Information needed before terms
Bring the construction contract, plans, budget, schedule, site address, contractor experience, protection details, financing requirements and loss history. Contact Westoak before demolition or materials arrive so the project is reviewed before the exposure begins.