Sometimes you need to buy a Builder’s Risk policy when doing construction projects and sometimes you don’t. If the coverage is required, it can be purchased by your General Contractor or yourself.
When you do a new building project, the only coverage suited is the builder’s risk policy. However when you do a renovation project there is building insurance already in place which may cover this. If the renovations includes upgrades you will need to increase the coverage limit. When doing a renovation and adding to the existing building at the same time it could go either way. Sometimes additional coverage is required and yet other times a compete Builder’s Risk is required. It depends on a number of factors.
It is recommended you increase the coverage limit prior to renovating in order to avoid being underinsured. It is also a good idea to check the existing building insurance policy to make sure the renovation project fits within the parameters of the current policy.
Be sure to seek advice and purchase insurance from an insurance broker who understands your business!