Builders Risk Insurance on a COI: What to Require

Last updated July 2026.

Builders risk insurance is a property policy that covers a structure and its materials while they are being built or renovated. It does not appear on the ACORD 25 certificate of liability insurance most contractors collect from vendors, because it is not a liability line. It is usually a single project policy carried by the owner or general contractor, not something each subcontractor buys, so requiring builders risk on every vendor's COI is usually a mistake.

If you track certificates of insurance on construction work, builders risk is one of the coverages people most often look for in the wrong place. Here is what it is, where it actually shows up, and what to require from whom.

What does builders risk insurance cover and not cover?

Builders risk covers the project itself during construction: the structure as it goes up, and the materials and supplies that will become part of it, often including materials in transit and at off-site storage. It is written to respond to perils like fire, wind, lightning, theft and vandalism of the work in progress. It is property insurance, first-party coverage for the thing being built.

It does not cover liability. Third-party bodily injury or property damage the contractor causes is general liability's job, not builders risk. It generally does not cover the contractor's own tools and equipment, which belong on an inland marine or equipment policy. And it typically ends when the project reaches its intended use, when the owner takes occupancy or a certificate of occupancy issues, at which point a permanent property policy takes over. Common exclusions include flood, earthquake, and faulty design or workmanship unless bought back by endorsement.

Does builders risk insurance show up on a certificate of insurance?

No, not on the ACORD 25. Builders risk is a property policy, and the ACORD 25 certificate of liability insurance only evidences liability lines: general liability, automobile liability, umbrella or excess, and workers compensation. There is no field on it for builders risk or any other property coverage. If you are scanning a subcontractor's ACORD 25 looking for builders risk, you will not find it, and its absence is not a compliance failure.

Property coverage is evidenced on a different form, the ACORD 24 certificate of property insurance. That is where builders risk would be shown. One caveat worth knowing: a plain ACORD 24 often does not satisfy a lender's requirements, so a mortgagee may ask for the policy or endorsement itself or an ACORD 28 rather than a bare certificate. Our guide to evidence of insurance versus a certificate of insurance covers how the ACORD 24, 25 and 28 forms differ.

Who is responsible for buying builders risk, the owner or the general contractor?

Either can carry it, but it is one policy for the whole project, not one per party. On many commercial projects the owner buys builders risk and names the general contractor and subcontractors as insureds, following standard contract documents. On design-build and many residential projects the general contractor buys it and names the owner and others. Whoever holds it, the named insured appears on the declarations page, and the other stakeholders with an insurable interest are added as additional insureds.

Construction lenders sit on top of this. A lender financing the build almost always requires proof of builders risk as a condition of funding and is added as mortgagee or loss payee. If you are the party that has to confirm a borrower's project is actually insured before releasing funds, builders risk evidence is one of the first documents you check, and it comes from the owner or GC's project policy, not from a subcontractor's liability certificate.

Do subcontractors need their own builders risk insurance?

Usually not. The owner's or GC's single project policy is designed to cover the full structure and materials, including the subcontractors' installed work. What a general contractor should actually collect from subs on an ACORD 25 is general liability, auto and workers compensation, along with the additional insured and waiver of subrogation endorsements the contract requires. Requiring each sub to also carry builders risk duplicates coverage that already exists at the project level and sends you hunting for a line that does not belong on their certificate.

There are real exceptions. Some large-project subcontracts do require a trade contractor to insure its own scope, and the right tool there is often an installation floater rather than a full builders risk policy. And a subcontractor relying on the GC's policy should confirm it is actually named as an insured, because some builders risk policies name only the owner and GC and do not extend to subs by default. That verification is worth doing before anyone starts work. Our subcontractor certificate of insurance requirements guide lays out what to require from subs on the certificate you do collect.

What is the difference between builders risk and general liability insurance?

They do different jobs, and a contractor often carries both. Builders risk is property coverage on the project: it pays when a storm damages the framing or materials are stolen from the site. General liability is third-party coverage on the business: it pays when a passerby is injured or the contractor damages a neighbor's property. Builders risk is temporary and tied to one site; general liability is ongoing and follows the contractor to every job. Builders risk shows on an ACORD 24; general liability shows on an ACORD 25.

How much does builders risk insurance cost?

Builders risk is rated on the total completed value of the finished project, the projected value at completion, focused on the hard construction costs rather than money spent to date. Approximate rates commonly cited run around half a percent to one percent of that completed value for new construction, with renovation and rehab work priced higher because the existing structure adds exposure. These are broker estimates, not filed rates, and the biggest driver is location, since carriers model hurricane, wildfire, tornado and severe-storm risk. Actual premium depends on the project type, materials and term.

How long does builders risk insurance last, and when does coverage end?

Builders risk is a temporary, project-specific policy that runs for the construction period, often written for a set term with the option to extend if the job runs long. Coverage ends when the project is put to its intended use, which usually means when the owner takes occupancy, when a certificate of occupancy issues, or when the property is otherwise complete, whichever the policy defines. After that point the finished, occupied building needs a permanent commercial property policy, because builders risk no longer responds. The exact trigger is defined in each policy, so it is worth reading rather than assuming.

What to require, and how to track it

The practical rule is to require builders risk from the party responsible for the project policy, the owner or general contractor per your contract, and to verify it through the project's builders risk policy or ACORD 24, not by looking for it on each vendor's liability COI. From subcontractors, require the liability coverages that actually belong on an ACORD 25 and verify the endorsements against your contract.

The reason this matters for tracking is that mixing up the forms creates false problems and hides real ones. A team that demands builders risk on every sub's ACORD 25 will chase a line that is not there while potentially missing the additional insured endorsement that is. Software that reads each certificate, identifies which form it is and checks the coverages that belong on it against your requirements keeps the review pointed at the right lines. Our subcontractor COI tracking for contractors page shows how those project requirements get verified automatically, and COI tracking for general contractors covers the wider set of project insurance a GC has to manage.