How does builder's risk insurance differ from permanent property insurance?

Builder's risk is temporary coverage during construction, while permanent property insurance covers the completed building once occupied.

Builder's risk insurance covers the construction phase, while permanent property insurance protects the completed structure. The two policies typically do not overlap.

A developer deducts builder's risk insurance premiums as a project expense, reducing taxable income.

Educate your team about the scope of your builder's risk policy to ensure everyone understands their responsibilities and coverage limits.