What is not covered by builder's risk insurance?

Exclusions often include earthquakes, floods, employee theft, war, government actions, and contract penalties.

Builder's risk insurance does not cover general liability, employee theft, normal wear and tear, contractor errors, or damages caused by earthquakes or floods unless specifically added.

A renovation project encounters vandalism, causing damage to the property. Builder's risk insurance covers the repair costs.

Evaluate the total project value, including materials and labor, to determine adequate coverage limits for your builder's risk policy.