Builders Risk Contract Checklist

Business: ________________ Project: ________________ Your role: ________________ Project state: ________________ Contract date: ________________ Review contact: ________________

Use this checklist when reviewing the contract, builders risk policy, endorsements, and any certificate of insurance. A certificate shows evidence of coverage, but the policy and endorsements control the actual coverage terms.

• Confirm who must buy and maintain the builders risk policy: owner, developer, general contractor, or contractor.
• Match the policy limit to the completed project value or the specific contract requirement.
• Confirm the limit does not include land value unless the contract or policy wording clearly requires another basis.
• Check whether the contract requires completed value, all risks, or equivalent builders risk wording.
• Confirm who pays the premium, policy fees, deductibles, and any uninsured part of a loss.
• Check whether the deductible changes for wind, hail, flood, earthquake, theft, or other causes of loss.

Notes: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

• Confirm whose financial interest must be insured, such as the owner, general contractor, subcontractors, lender, architects, engineers, or suppliers.
• Verify whether ________________ must be a named insured, additional insured, loss payee, or another listed party.
• Ask for the actual policy or endorsement wording when the contract assigns builders risk obligations.
• Review waiver of subrogation wording if the contract requires it.
• Confirm who receives claim payments and how proceeds must be used if the insurer pays for covered project property damage, subject to policy terms, exclusions, conditions, limits, and the facts of the loss.

Notes: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

• Confirm the date coverage must start for ________________, such as contract signing, mobilization, material purchase, or the first day of construction.
• Confirm when coverage ends, including policy expiration, cancellation, occupancy, substantial completion, final payment, or intended use of the building.
• Check whether partial occupancy or use by the owner changes coverage before final completion.
• Confirm whether an extension is needed if the project runs longer than the policy term.
• Plan the transition to permanent property insurance before builders risk coverage ends.

Notes: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

• Confirm the policy covers the building or structure under construction, renovation, remodeling, or buildout.
• Check whether materials, supplies, and property that will become part of the project are covered on the job site.
• Check whether materials in transit are covered and whether a transit sublimit applies.
• Check whether off-site storage is covered and whether the carrier needs the storage address, property type, and value.
• Confirm whether contractor-owned tools, mobile equipment, lifts, generators, and vehicles need separate contractor's equipment, inland marine, or commercial auto coverage.
• Review whether the project needs an installation floater for property being installed by a trade contractor.

Notes: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

• Check whether the contract requires soft cost coverage for expenses caused by a covered delay, such as additional loan interest, re-inspection fees, extended permits, design fees, taxes, insurance premiums, or extended general conditions.
• Check whether the contract requires delay in completion, loss of rents, or business interruption coverage.
• Confirm the sublimits, waiting period, and coverage period for any delay or soft cost endorsement.
• Review flood, earthquake, wind, hail, and coastal restrictions for the project location.
• Review exclusions for wear and tear, employee theft, mechanical breakdown, pollution, contamination, and faulty design, planning, workmanship, or materials.
• Confirm whether the policy may cover resulting damage to other covered property when faulty work causes a separate covered loss.

Notes: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________