Builders risk insurance covers a building under construction or renovation against fire, theft, wind, vandalism, and other covered losses — from groundbreaking through certificate of occupancy. ALLCHOICE Insurance compares builders risk options across multiple top-rated carriers for NC homeowners, contractors, and developers.
NC Builders Risk Requirements Lender & contract-required
NC lenders funding construction loans require builders risk insurance for the full replacement cost of the project as a condition of funding
Many NC general contractor agreements require the owner to provide builders risk coverage; some GC contracts require the contractor to carry it
Coverage limit should reflect the completed value of the project — including materials, labor, and all installed components
Coastal county projects may need separate wind coverage from the NCIUA Beach Plan — standard builders risk policies may exclude named-storm wind in high-risk zones
Builders risk policies typically exclude flood damage — the same exclusion that applies to standard commercial and residential property policies. NC construction projects in flood-prone areas — particularly coastal sites and WNC mountain areas post-Helene — may need a separate flood policy covering materials and work in progress during construction. Your ALLCHOICE advisor can identify whether your project site has flood exposure and arrange appropriate coverage.
Core coverage
Core coverage
Core coverage
For investment projects
For renovations
Optional endorsement
Did you know?
One of the most common builders risk coverage gaps in NC is the existing-structure exclusion. When a contractor performs a major renovation — gut rehab, addition, or structural upgrade — the new construction work may be covered but the existing building may not be. A fire that starts in a newly framed addition can burn down the entire existing structure, and without an existing-structure extension on the builders risk policy, the owner may be left without coverage for the original building. ALLCHOICE reviews your project scope specifically to make sure existing structure exposure is addressed before construction begins.
Builders risk pricing and coverage terms vary significantly by carrier, project type, location, and construction method. ALLCHOICE evaluates the full coverage form — not just the premium — to make sure your project is protected from groundbreaking through certificate of occupancy, and that existing structure, soft costs, and flood exposure are addressed before the first nail is driven.
We compare builders risk options across multiple top-rated carriers for your project type, location, and construction timeline — so you see real options, not one company’s standard form.
We review your project scope for existing-structure exposure and make sure the policy addresses the full renovation risk — not just the new work.
For NC coastal and post-Helene mountain projects, we identify wind and flood gaps in the base builders risk policy and arrange appropriate supplemental coverage before construction begins.
We manage the transition from builders risk to a permanent homeowners or commercial property policy at substantial completion — so there’s no coverage gap between construction and occupancy.
NC state law doesn’t require it, but construction lenders do. Most NC construction loans require builders risk coverage for the full project value as a condition of funding. Many GC contracts also assign responsibility for builders risk to the project owner. Without it, a fire or storm during construction can result in a total loss with no insurance payout and a full outstanding loan balance.
Yes — most builders risk policies cover theft of building materials stored on-site. Copper theft, HVAC equipment theft, lumber theft, and appliance theft from construction sites are all covered causes of loss. Employee and contractor theft may be excluded depending on the policy form — confirm with your ALLCHOICE advisor if employee honesty coverage is needed for your project.
Not automatically. Standard builders risk covers the new construction only — not the existing structure being renovated. A fire that starts in new work can burn the entire existing building, and without an existing-structure extension, the original building may not be covered. For major renovations, always confirm that existing structure coverage is included in your builders risk policy.
Builders risk coverage typically ends at the earliest of: the policy expiration date, the date the building is occupied or put to its intended use, or the date construction is substantially complete. Substantial completion is generally the issuance of a certificate of occupancy in NC. The transition to a permanent homeowners or commercial property policy must be managed carefully to avoid a gap in coverage between construction and occupancy.
We compare options for your project type, location, and timeline — and identify existing structure, soft cost, and flood gaps before construction begins.
Log in to the Member Center to discuss builders risk for your upcoming project, or call 844.540.0463 to speak with an advisor about your construction coverage needs.
