Builder’s Risk Insurance in Pennsylvania

Frequently Asked Questions About Builder’s Risk in Pennsylvania

What does builder's risk insurance mean for Pennsylvania projects?

Builder’s risk, also called course of construction insurance, is temporary property coverage that runs for the expected construction period. Depending on the carrier and form, it may cover the structure being built, materials and supplies intended for the project, and certain fixtures waiting to be installed, including materials at the site, in transit or in temporary storage. It does not replace the other policies a job usually needs. General liability, workers’ compensation and coverage for a contractor’s tools and equipment are separate. Coverage varies by carrier and policy, and the issued policy and endorsements decide what is covered.

Who buys builder's risk coverage in Pennsylvania?

Common buyers include homeowners building a new home or a major addition, rehab and fix-and-flip investors working on older homes and rowhouses, general contractors and home builders responsible for project property, developers of multifamily, mixed-use and commercial projects, and owners whose lender or construction contract requires project coverage. The contract or loan agreement usually spells out who buys the policy and who must be named. Send us that section and we will review it with you.

Is builder's risk insurance required in Pennsylvania?

Pennsylvania does not require builder’s risk on every project. Lenders, owners and construction contracts often do, so check your loan documents and contract.

How do Pennsylvania building codes affect builder's risk?

Pennsylvania’s Uniform Construction Code, created by the Pennsylvania Construction Code Act (Act 45 of 1999), sets the statewide building code framework, with local code officials or third-party agencies handling permits and inspections and the Department of Labor and Industry overseeing the program. Your permit status, inspection schedule and certificate of occupancy date all affect when builder’s risk coverage starts and ends, so we ask about them up front.

When does Pennsylvania builder's risk coverage start and end?

A builder’s risk policy is usually written for the planned construction period. Coverage generally needs to be in place before materials arrive or work begins, because a policy usually will not reach back to a loss that already happened. Some policies end when the project is complete, when the building is occupied or put to its intended use, when the owner accepts the work, or on the policy expiration date, whichever comes first. In Pennsylvania, the final inspection and certificate of occupancy from your local code official often line up with that moment, so the permanent homeowners, landlord or commercial property policy should be ready to start before the builder’s risk ends. If the project will run past the expiration date, ask about an extension early, because a gap between policies can leave the building exposed.

Can a Pennsylvania rowhouse renovation be covered?

Often, yes, depending on the carrier. Tell us whether the building is attached, vacant or occupied, and whether the existing structure needs coverage.

Does builder's risk cover frozen pipes or snow damage in Pennsylvania?

It depends on the policy. Pennsylvania winters bring snow, ice and freezing temperatures, which can mean snow load on partly finished roofs, ice damage and burst pipes once plumbing is installed but heat is not reliable. Some forms limit freezing losses unless heat is maintained or water is shut off. We review those conditions with you.

Is coastal wind a concern for Pennsylvania projects?

For most Pennsylvania sites, hail, severe thunderstorms and winter storms are more common concerns than coastal wind. Projects near Lake Erie or the Delaware Estuary may have added shoreline and flood questions. Although hurricanes rarely reach Pennsylvania at full strength, their remnants can: on September 1, 2021, the remnants of Ida caused catastrophic flash flooding across eastern Pennsylvania, according to the National Weather Service in Mount Holly.

Does builder's risk include flood coverage in Pennsylvania?

Often it does not, or only by endorsement. The National Flood Insurance Program can insure some buildings under construction, but FEMA’s manual notes conditions: for example, a building that is not yet walled and roofed can lose eligibility if work stops for more than 90 days, and materials are generally covered only when stored in an enclosed building on or next to the premises. River valleys across the state, including the Delaware, Schuylkill, Lehigh, Susquehanna and the rivers around Pittsburgh, make flood map checks worthwhile before a project starts.

How do I get a builder's risk quote in Pennsylvania?

Call (855) 449-8552 or use the quote form on this page. Have the project address and municipality, whether it is new construction, an addition or a renovation and whether the building is attached, the estimated completed value (and the existing building value for renovations), planned start and completion dates and whether work runs through winter, occupancy and plans for heat and water shutoff, site security and prior losses, and the owner, contractor, lender and other parties to be listed. Send plans, your contract or your lender’s insurance requirements with your request.