Do lenders require builder's risk insurance?

Often, yes. Lenders typically require proof of builder's risk insurance to protect their financial interest in the project.

Yes, many lenders require builder's risk insurance as a condition for financing construction projects to ensure the structure is protected during development.

After completing a multi-unit complex, the builder secures permanent property insurance to replace the builder's risk policy.

Evaluate site-specific risks, such as vandalism or theft, and implement security measures to reduce premiums and improve site safety.