Builders Risk Insurance for Commercial Roofing Contractors
Builders risk insurance covers structures under construction or major renovation against physical damage from fire, wind, theft, and other perils. For commercial roofers working on new construction or full tear-off-and-replace projects, the building is at its most vulnerable while the roof is open. Builders risk fills the gap until the project is complete and the permanent property policy takes over.
What It Covers
Builders risk covers the structure under construction, materials stored on site, and materials in transit to the project. If a storm damages the building interior because the old roof has been removed and the new one isn't yet installed, builders risk responds. It covers fire, lightning, wind, hail, theft, vandalism, and vehicle damage. Some forms also cover soft costs like extended project timelines and additional interest expenses caused by a covered loss.
What It Does Not Cover
Builders risk does not cover damage caused by faulty workmanship, defective materials, or design errors — though resulting damage from those causes may be covered. It excludes earthquake and flood unless endorsed. Employee theft, mechanical breakdown, and wear and tear are excluded. Most policies have a project completion deadline after which coverage expires.
Real Claim Examples
A severe thunderstorm rips through a partially completed warehouse reroof, flooding the interior and destroying $320,000 in drywall, electrical, and flooring work. An arsonist sets fire to a strip mall under construction over a weekend, causing $450,000 in structural damage before the roof system is complete. Vandals strip $75,000 in copper flashing and HVAC units from a healthcare facility with the roof still open.
How Much It Costs
Builders risk premiums typically run 1% to 4% of the total project value for commercial roofing jobs. A $2M reroof project might carry a builders risk premium of $20,000 to $80,000 depending on the building type, location, and coverage breadth. Short-term single-project policies are common, though annual reporting forms are available for contractors with consistent project flow.
Why Work With Us for This Coverage
We understand which reroofing projects actually need a standalone builders risk policy versus relying on the building owner's coverage. Our team structures policies that match the project timeline and avoids the coverage gaps that occur when the old roof is removed but the new one isn't watertight.
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