Broadly speaking, builder’s risk insurance protects against unplanned risks to work under construction and to certain items on the construction site.
Builder’s risk provides first-party coverage, which means that the insured itself can make a claim directly against the policy.
For additional reading, the Houston Chronicle has published an overview of builder’s risk insurance here.
Insurance is a specialized practice area, and the precise language of the insurance policy is very important to understanding rights and responsibilities. For this reason, it’s wise to visit with your insurance agent or attorney about your particular situation.
In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.