What Insurance Covers Construction Materials?
Builders risk insurance covers materials for a construction project at the jobsite, and often in storage or transit, until the work is finished.
Builders risk insurance covers the materials that will become part of the building while the project is under way. Coverage applies at the jobsite, and the policy can extend to materials in temporary storage or on the way to the site, often with lower limits.
Contractors' own tools and equipment aren't building materials. Cover those with an inland marine equipment floater.
Before you buy, check that the project description and covered locations are right, what limits apply to storage and transit, and which causes of loss are excluded. Make sure the owner, contractor and any lender are all named as the contract requires.
Coverage Guides Related to Builders Risk Insurance
Sources for Builders Risk Insurance Answers
- Glossary of Insurance Terms. National Association of Insurance Commissioners; Builders’ Risk Policies; Commercial General Liability; Directors & Officers Liability; Auto Liability; Business Interruption; Equipment Breakdown & Machinery. Accessed 2026-09-25.
- Builders Risk Coverage Form. Insurance Services Office, Inc.; hosted by Touchpoint Markets; A.1.a–b and A.2.a,d p.1; B.3.c p.11; C p.12. Accessed 2026-09-25.
- Commercial Insurance Guide. California Department of Insurance; Commercial General Liability; Commercial Property; Inland Marine; Boiler and Machinery. Accessed 2026-09-25.