Builders Risk vs. Vacant Property Insurance: Which One Do You Need?
Both policies insure a house nobody lives in. The difference is whether work is being done.
Builders risk
For a property under renovation or construction. Written to the as-completed value, so the coverage grows with the work, and it covers materials on site. Terms are usually 3 to 12 months.
Vacant dwelling
For a home that is empty with no significant work under way - waiting for a renovation to start, on the market after one, or between tenants. Usually written for a year, often on named perils.
The vacancy clause
Homeowners and landlord policies typically limit coverage after 30 to 60 consecutive days of vacancy - for vandalism, glass breakage, water damage and theft first. That gap is the reason both of these policies exist.
Switching between them
Many projects use both: vacant at purchase, builders risk once the work starts, then landlord when a tenant moves in. Tell us the plan and the policy is written for the stage you're in.
Questions
My contractor starts in a month. Which policy now?
Usually builders risk from closing if the lender is funding a rehab; otherwise vacant until work starts. We'll recommend one from your timeline.
Do either cover theft of tools?
Contractors' tools are normally insured on the contractor's own policy, not yours.
Get a quote today.
Send the address and your lender's details - we quote with several carriers at once and send the evidence of insurance to your lender. Or call 512-801-8702.