Builder Insurance—Ever Wondered Who Covers the Mishaps?

BUILDER INSURANCE—EVER WONDERED WHO COVERS THE MISHAPS?

I get where you’re coming from, but I think it’s a bit more complicated than just “the builder should cover everything.” When we did our reno last year, I assumed the same thing—figured the builder’s insurance would handle any accidents or theft. Turns out, their policy only covered certain things, and there were all these exclusions buried in the fine print. Like, if my own stuff got damaged or stolen (tools I left on site, for example), that was on me unless I had my own coverage.

It does feel like a racket sometimes, but I guess part of it is about who actually owns what during the build. The builder’s responsible for their materials and workers, but once something’s installed or delivered to your property, it gets murky. Our insurance broker explained that if a storm hit and damaged the half-built extension, we’d be in a weird limbo unless we had extra coverage. Not saying it’s fair, just that the lines aren’t as clear as they probably should be.

Honestly, I wish it was more straightforward. You’d think if you’re paying someone to manage the whole project, they’d take on all the risk. But then you hear horror stories about builders going bust halfway through and suddenly you’re left holding the bag for unfinished work and missing materials. Maybe that’s why insurers push homeowners to get their own policies—to cover those gaps when things go sideways.

I do agree it feels like we’re nickel-and-dimed at every turn. But after seeing a neighbor lose out big time when their builder’s insurance didn’t pay up after a fire, I’m kind of glad we had our own backup. Still doesn’t make it any less frustrating to fork out for something you hope you’ll never need...

I get what you mean about the fine print—been there, read that headache. The part that always gets me is how “ownership” shifts mid-project.

the builder’s responsible for their materials and workers, but once something’s installed or delivered to your property, it gets murky.

Here’s what I keep coming back to: if you’re investing hundreds of thousands (or more) into a dream home, why isn’t there a single, comprehensive policy that just covers everything until handover? Is it really so hard for insurers to create something less piecemeal? Or is this just another way the industry keeps us on our toes—and on the hook?

Title: Builder Insurance—Ever Wondered Who Covers the Mishaps?

That “ownership handoff” is a classic headache. I ran into something similar when we did a major retrofit for energy efficiency—think solar, insulation, the works. The solar panels were delivered and just sat in my driveway for two days before install. Turns out, if a storm had hit or someone decided to help themselves, it was on me, not the contractor. No one really spells that out until you’re knee-deep in paperwork.

I’ve asked around about those all-in-one policies too. From what I gather, insurers and builders both like to keep things compartmentalized because it limits their risk exposure. If there’s a gray area, it’s easier for them to point fingers at each other—or at you—when something goes wrong. It’s frustrating, especially since most people building homes aren’t insurance experts and just want peace of mind.

Honestly, I think part of the problem is that the industry’s slow to adapt. There are “course of construction” policies out there, but they’re rarely comprehensive and often come with exclusions buried in legalese. You’d think with how much money is changing hands, someone would have streamlined this by now.

It does feel like a bit of a racket sometimes... or maybe just inertia from how things have always been done. Either way, it puts way too much pressure on homeowners to read between the lines and chase down every possible scenario. Not exactly what you want when you’re already juggling budgets and timelines.

If I could do it over again, I’d push harder for clarity up front—even if it means paying a bit more for extra coverage or getting everything spelled out in writing before anything shows up on site. Learned that lesson the hard way.

It’s wild how much of this stuff falls through the cracks. I remember asking my builder point-blank about who’s responsible for materials on site, and got a vague “it depends.” Not super helpful. I get that insurance is complicated, but why is it so hard to just get a straight answer? Feels like you need a law degree just to know if your new windows are covered if they get smashed before install. I’m with you—next time, I’m getting every little detail in writing, even if it means paying extra. Peace of mind is worth it.

BUILDER INSURANCE—EVER WONDERED WHO COVERS THE MISHAPS?

Yeah, the “it depends” answer is classic. Drives me nuts too. I’ve seen this play out so many times—one person thinks the builder’s got it covered, the builder thinks it’s on the homeowner, and then something gets damaged and everyone’s scrambling to check the fine print. It’s like a weird game of hot potato with responsibility.

Honestly, I wish there was a universal answer, but it really does depend on the contract and the insurance policies in play. Some builders have a blanket policy that covers materials on site, but others expect you to have your own coverage until everything’s installed. And then there’s the whole “who owns the materials” question—sometimes ownership transfers when they’re delivered, sometimes not until they’re installed. Super clear, right?

I always tell people to get it in writing, even if it feels like overkill. I’ve had clients who thought their fancy imported tile was covered, only to find out after a forklift mishap that it wasn’t. That’s a rough conversation. Paying a bit more for extra coverage or a rider on your homeowner’s policy can save a lot of headaches. It’s not glamorous, but neither is arguing over who owes for broken windows.

If you’re mid-project, it’s not too late to ask for clarification and get something in writing. Even an email chain is better than nothing. And yeah, insurance is a maze, but a good broker can usually break it down without all the legalese. I wish more builders would just be upfront about what’s covered and what’s not, instead of the “it depends” shuffle.

Anyway, you’re not alone in feeling like you need a law degree for this stuff. I’ve been in the industry for years and still get tripped up by the fine print sometimes.