This type of policy insures a property owner or contractor against a loss or physical damage to building materials, fixtures or equipment used during building or renovation projects. It provides protection for a wide range of events including:

• - Fire

• - Lightning

• - Vandalism

• - Theft

• - Windstorm

Additional coverages can be requested for risks such as the enforcement of law ordinances that may trigger unexpected modifications when a project needs to be rebuilt after being damaged.

It can be purchased by the owner of the project or the builder. Coverage usually starts before building begins but can be purchased afterwards if the project is less than 30% complete.

While this policy covers for losses to building materials, it doesn’t provide coverage for liabilities incurred in case a worker gets injured or if there is damage to another person’s property.