Commercial property: construction
Building or renovating? Cover the project and the handoff.
Construction lenders want builder's risk in place before the first draw. When the project finishes, the switch to permanent coverage needs to happen without a gap.
What usually goes wrong
- Builder's risk is bought too small, or with the wrong start date.
- Coverage lapses between completion and the permanent policy.
- Lease-up or partial occupancy isn't handled.
How we handle it
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Step 1: Place builder's risk sized to the project.
Builder's risk is property coverage for a building under construction or major renovation. We size it to the budget and the schedule, and set the start date to match the loan.
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Step 2: Plan the transition before completion.
Permanent property coverage is arranged ahead of time, including how lease-up and partial occupancy will be handled.
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Step 3: Deliver documents to the construction lender.
The binder, evidence of insurance, and any endorsements the lender requires, before the first draw.
What to have ready
- Project budget: hard and soft costs
- Construction schedule, with start and completion dates
- The construction contract
- The construction lender's insurance requirements
- Plans or a project summary
- For renovations: the current policy on the existing building
Don't have everything? Start anyway.
Timeline
Every step is planned back from your date.
- Loan commitment and permits
- Builder's risk bound before the first draw
- Construction
- Permanent coverage arranged
- Completion and occupancy
Common questions
How early should we start before a closing?
As soon as you're under contract. Insurers need property details and loss history to quote, and some properties take longer to place.
Can you deliver documents directly to our lender?
Yes. We send the binder, evidence of insurance, certificates, and endorsements to your lender and escrow.
Do you work with surplus lines insurers?
Yes, when the standard market can't place a property. We'll explain what that means for your coverage before you decide.
What do you need from us?
Your current policies if you have them, a statement of values, five years of loss runs, and your lender's insurance requirements. Missing something? Start anyway.
Have a date coming up?
Tell us what's happening and when. Your broker will reply within one hour on business days.