Builders Risk Insurance Portland, OR
Construction projects can represent a substantial financial investment long before the building is ready for occupancy. A fire, theft, vandalism, severe weather event, or other covered loss during construction can damage the structure, destroy materials, delay completion, and create significant unexpected expenses.
Richardson Insurance Services, Inc. helps contractors, developers, property owners, and investors find Builders Risk Insurance in Portland, Oregon for new construction and qualifying renovation projects.
As an independent insurance agency, we can help evaluate your project, identify potential construction-phase exposures, and explore builders risk coverage designed around the type, value, and duration of the work being performed.
What Is Builders Risk Insurance?
Builders risk insurance is a specialized form of property insurance designed to protect a building or structure while it is being constructed or substantially renovated.
Unlike general liability insurance, which primarily addresses liability claims involving bodily injury or property damage to others, builders risk is focused on the construction project itself.
Depending on the policy, builders risk insurance may cover:
- Buildings and structures under construction
- Materials intended to become a permanent part of the project
- Supplies at the jobsite
- Foundations
- Temporary structures
- Scaffolding and construction forms
- Certain property in transit
- Materials temporarily stored away from the jobsite
- Certain additional expenses following a covered loss
Coverage varies significantly among policies. Richardson Insurance Services, Inc. can help Portland construction professionals and property owners evaluate what is—and is not—included in a proposed builders risk policy.
Who Needs Builders Risk Insurance in Portland?
Builders risk coverage can be appropriate for several parties involved in a Portland construction project, including:
- General contractors
- Home builders
- Commercial contractors
- Residential developers
- Commercial developers
- Property owners
- Real estate investors
- House flippers
- Business owners constructing new facilities
- Property owners completing major renovations
Who actually purchases the policy can depend on the construction contract and the financial interests involved in the project.
The property owner may purchase builders risk coverage on one project, while the general contractor or developer may be responsible on another.
The important issue is establishing responsibility before construction begins rather than discovering after a loss that each party believed someone else had insured the project.
Contact Richardson Insurance Services, Inc. today to discuss Builders Risk Insurance in Portland, Oregon and request a quote for your upcoming construction project.
Builders Risk for New Construction in Portland
New construction is one of the most common reasons for purchasing builders risk insurance.
A building under construction faces exposures that differ from those of a completed and occupied property. Walls may be open, electrical systems may be incomplete, building materials may be stored onsite, and contractors and subcontractors may be moving through the property throughout the construction process.
Richardson Insurance Services can help explore builders risk coverage for projects such as:
- New single-family homes
- Multi-family construction
- Apartment buildings
- Condominium projects
- Retail buildings
- Office buildings
- Warehouses
- Mixed-use properties
- Restaurants
- Commercial buildings
- Other qualifying construction projects
The appropriate coverage depends on the characteristics and value of the individual project.
Builders Risk for Remodeling and Renovation Projects
Builders risk isn't limited to ground-up construction.
Substantial remodeling, renovation, or building additions can create construction-related property exposures that may not fit neatly within a standard property insurance policy.
Examples can include:
- Major home renovations
- Commercial building renovations
- Building additions
- Structural remodeling
- Tenant improvements
- Conversion projects
- Extensive interior reconstruction
- Rehabilitation of older properties
Renovation projects can be particularly complicated because both an existing structure and the new construction work may be involved.
It's important to determine whether the builders risk policy covers only the new work or also provides appropriate protection for the existing structure.
Richardson Insurance Services, Inc. can help review the project before work begins so these issues can be addressed.
What Can Builders Risk Insurance Cover?
Builders risk policies vary by carrier and project, but coverage may be available for direct physical loss caused by risks such as:
- Fire
- Lightning
- Wind
- Hail
- Theft
- Vandalism
- Certain types of water damage
- Damage to covered building materials
Coverage is subject to policy terms, exclusions, deductibles, and limits.
Additional coverage may also be available for property in transit or temporarily stored away from the construction site.
For example, if expensive materials have been purchased for a Portland project but are being stored at another location until they're needed, the project owner or contractor should determine whether those materials are covered.
Portland Construction Risks Worth Considering
Portland construction projects can present exposures that deserve particular attention when arranging builders risk coverage.
Theft and Vandalism
Construction sites can contain lumber, fixtures, appliances, wiring, tools, and other valuable materials. Unoccupied or partially completed buildings can also be vulnerable to vandalism.
Policyholders should understand how their builders risk coverage treats theft of building materials and whether security requirements apply.
Water Damage
Water intrusion can cause significant damage before a building envelope, roof, plumbing, or drainage systems are fully completed.
Coverage for water-related losses varies, making it important to understand the policy rather than assuming every form of water damage is covered.
Wind and Storm Damage
Buildings under construction can be more vulnerable to weather because roofs, walls, windows, and other protective components may not yet be complete.
Earthquake
Earthquake coverage deserves specific attention in Oregon.
Do not assume earthquake damage is automatically covered under every builders risk policy. If earthquake coverage is important for the project, it should be specifically discussed when obtaining coverage.
Flood
Flood is another exposure that should be reviewed separately. Standard builders risk coverage may exclude or limit flood losses unless appropriate coverage has been added.
The location of the project can therefore matter when determining what additional coverage should be considered.
How Much Builders Risk Insurance Do I Need?
A builders risk limit should generally reflect the value of the completed project that is subject to coverage—not simply the amount spent on construction as of the day the policy begins.
Important considerations can include:
- Construction contract value
- Building materials
- Labor
- Permanent fixtures
- Project improvements
- Existing structure value for renovation projects
- Architect and engineering expenses
- Debris removal
- Potential increased construction costs
- Other covered project expenses
Oregon's own risk-management guidance for state construction projects calls for builders risk limits equal to the full completed value of a new structure or the replacement value of covered alterations and additions.
Undervaluing a project can create significant problems following a major loss.
Richardson Insurance Services can help you review the project details when determining an appropriate builders risk limit.
Don't Overlook Soft Costs
A physical loss during construction can cost much more than simply replacing damaged lumber, fixtures, or walls.
Suppose a covered fire delays completion of a Portland commercial building for several months. In addition to repairing the physical damage, the developer could incur additional expenses because the project is late.
Depending on the policy and endorsements selected, soft costs coverage may help address certain additional expenses caused by a covered construction loss.
Examples may include:
- Additional loan interest
- Architectural or engineering fees
- Additional insurance expenses
- Real estate taxes
- Legal or accounting expenses
- Certain advertising expenses
- Certain lease-related costs
For larger development projects, soft costs can represent a meaningful exposure and should be considered when designing builders risk coverage.
Builders Risk Insurance for Portland Contractors
General contractors should not assume their commercial general liability policy protects the value of the building they're constructing.
Builders risk and general liability serve different purposes.
A contractor may need an overall insurance program that includes:
- Commercial general liability
- Contractors equipment coverage
- Commercial auto insurance
- Workers' compensation
- Contractor bonds
- Umbrella or excess liability
- Builders risk
Richardson Insurance Services, Inc. can help construction companies coordinate these different coverage needs.
For a broader look at protecting your contracting operation, visit our Contractors Insurance Portland, OR page.
Builders Risk Insurance for Portland Developers
Developers can have significant capital exposed during the period between land acquisition and completion of a building.
Builders risk can be particularly important for developers constructing:
- Single-family homes
- Multi-unit residential properties
- Condominium projects
- Apartment buildings
- Retail developments
- Office buildings
- Mixed-use projects
- Other commercial properties
Developers should consider not only the physical structure but also construction materials, project timelines, financing requirements, deductibles, soft costs, and the point at which builders risk coverage ends.
Richardson Insurance Services can help Portland developers evaluate these exposures on a project-by-project basis.
Builders Risk for Spec Homes and Residential Construction
Home builders and residential developers may have multiple properties under construction at the same time.
Rather than waiting until a home is completed to think about property coverage, builders should determine how structures, building materials, and related property will be protected throughout construction.
For builders with multiple active projects, Richardson Insurance Services can discuss whether individual project policies or another builders risk arrangement is appropriate for the operation.
When Should Builders Risk Coverage Begin?
Ideally, builders risk insurance should be arranged before construction creates an uninsured property exposure.
Waiting until a project is well underway can create complications and potentially leave earlier work or materials inadequately protected.
Before construction begins, determine:
- Who is responsible for obtaining the policy
- Which parties need to be included
- When coverage becomes effective
- Project value
- Expected construction duration
- Whether materials will be stored offsite
- Whether materials will be transported to the project
- Whether an existing structure is involved
- Lender requirements
- Contractual insurance requirements
Addressing these issues early can make arranging coverage considerably easier.
When Does Builders Risk Insurance End?
Builders risk is temporary coverage designed for the construction period.
Depending on the policy, coverage can end based on events such as:
- Project completion
- Occupancy
- The building being put to its intended use
- Sale of the property
- Expiration of the policy
- The insured's interest in the property ending
This is an important transition point.
A property owner shouldn't assume builders risk automatically becomes permanent property insurance when construction is finished. Permanent commercial property, homeowners, landlord, condominium, or other appropriate coverage may need to be in place when the construction exposure ends.
Builders Risk vs. Contractor Bonds
Because Portland contractors may need both, it's important to distinguish between builders risk insurance and contractor bonds.
Builders risk insurance is designed to protect covered property during construction.
A contractor surety bond provides a financial guarantee associated with the contractor's obligations and licensing or contractual requirements.
One does not replace the other.
Oregon contractors subject to Construction Contractors Board licensing requirements can have separate bonding and liability insurance obligations.
Learn more about Contractor Bonds Portland, OR from Richardson Insurance Services.
What Does Builders Risk Insurance Cost in Portland?
There isn't a single standard price for builders risk coverage.
Insurance companies may consider:
- Total project value
- Type of construction
- Residential or commercial use
- New construction versus renovation
- Construction materials
- Project location
- Project duration
- Contractor experience
- Protection and security measures
- Deductible
- Coverage limits
- Loss history
- Optional coverages
- Whether earthquake or flood coverage is requested
A relatively straightforward residential project will present a very different risk from a large commercial or mixed-use development.
Richardson Insurance Services, Inc. can help you provide insurers with the project information needed to obtain appropriate builders risk options.
Builders Risk Insurance Throughout the Portland Metro Area
Richardson Insurance Services, Inc. helps contractors, developers, investors, and property owners with construction projects throughout Portland, Beaverton, Hillsboro, Tigard, Lake Oswego, Gresham, Tualatin, Oregon City, Happy Valley, Milwaukie, and surrounding Oregon communities.
Whether you're constructing a new home, developing commercial property, or undertaking a substantial renovation, we can help evaluate the insurance needs associated with the project.
Get a Builders Risk Insurance Quote in Portland, Oregon
Construction projects change every day. The insurance protecting them needs to account for the unique risks that exist between groundbreaking and completion.
Richardson Insurance Services, Inc. can help Portland contractors, developers, property owners, and investors explore builders risk insurance for new construction and renovation projects.
As an independent insurance agency, we'll work with you to understand the project, construction value, timeline, property involved, and coverage requirements before exploring available insurance options.
Contact Richardson Insurance Services, Inc. today to discuss Builders Risk Insurance in Portland, Oregon and request a quote for your upcoming construction project.
Frequently Asked Questions About Builders Risk Insurance in Portland
Is builders risk insurance required in Oregon?
Builders risk isn't a general Oregon contractor licensing requirement in the same way that certain liability insurance and CCB bonds are. However, a construction contract, lender, property owner, or other interested party may require builders risk coverage for a particular project.
Who should buy builders risk insurance—the owner or contractor?
Either may be responsible depending on the construction contract and project. Property owners, developers, and general contractors should determine responsibility before work begins and make sure all necessary interests are appropriately addressed.
Does builders risk cover renovations?
Builders risk may be available for substantial renovation and remodeling projects. Renovations involving an existing building require special attention to whether coverage applies to the existing structure as well as the new construction work.
Does builders risk insurance cover theft from a Portland construction site?
Builders risk policies may cover theft of certain covered building materials, but coverage varies by policy. Tools and equipment owned by contractors may require separate contractors equipment or inland marine coverage.
Does builders risk cover earthquake damage in Oregon?
Earthquake coverage should not be assumed. Availability and terms vary by policy and insurer. Given the potential exposure in Oregon, earthquake coverage should be specifically discussed when evaluating builders risk insurance.
Does general liability insurance include builders risk?
No. General liability and builders risk serve different purposes. General liability primarily addresses covered liability claims, while builders risk is property coverage designed for the building and other covered property during construction.