Builder’s Risk Insurance for New Apartment Construction: What You Need to Know
When insuring construction projects, Builder’s Risk Insurance plays a crucial role in protecting buildings and materials during the construction phase. But not all builder’s risk policies are created equal. Two common forms are the Reporting Form Builder’s Risk and the One-Shot Builder’s Risk policy.
Understanding the difference can help developers, general contractors, and property owners choose the right coverage structure for their construction business or project.
What Is Builder’s Risk Insurance?
Builder’s Risk Insurance, also known as course of construction insurance, covers buildings under construction against property damage due to fire, theft, vandalism, wind, and other perils. It typically protects:
- The structure itself
- On-site materials
- Temporary structures
- Equipment and tools
- Sometimes soft costs (e.g., loan interest, legal fees)
Now, let’s break down the two main types of policy structures: Reporting Form and One-Shot.
What Is a One-Shot Builder’s Risk Policy?
A One-Shot Builder’s Risk Insurance policy (also called a single-project policy) is written for one specific construction project. The coverage lasts for the duration of that single build—usually 6, 9, or 12 months—and terminates once the project is complete or occupied.
✅ Best For:
- One-time or infrequent builders
- Custom home builders
- Ground-up construction of apartments or commercial buildings
- Renovations or major additions
✅ Key Features:
- Covers only one project per policy
- Premium is paid upfront
- No need to report progress or multiple projects
- Simplified underwriting
✅ Pros:
- Simple and straightforward
- Ideal for standalone or first-time builds
- Predictable costs
❌ Cons:
- No flexibility for ongoing or future projects
- May not be cost-effective for builders with multiple projects per year
What Is a Reporting Form Builder’s Risk Policy?
A Reporting Form Builder’s Risk Policy is designed for contractors or developers with multiple construction projects. Instead of buying a new policy for each project, the insured maintains one master policy and reports each new project as it begins.
✅ Best For:
- General contractors
- Developers with ongoing projects
- Builders with multiple residential or commercial builds per year
✅ Key Features:
- Master policy with regular (monthly/quarterly) reporting of new projects
- Flexible project start dates
- One renewal date for all projects
- Premiums are adjusted based on reported values
✅ Pros:
- Efficient for multiple projects
- Streamlined administration
- May offer lower premiums over time
- Ensures continuous coverage
❌ Cons:
- Requires accurate and timely reporting
- Higher risk of administrative errors
- Not ideal for one-time builders
Key Differences Between One-Shot and Reporting Form Policies
| Feature | One-Shot Builder’s Risk | Reporting Form Builder’s Risk |
|---|---|---|
| Number of Projects | One project per policy | Multiple projects under one policy |
| Payment | One-time, upfront | Based on reported values |
| Administration | Minimal | Ongoing project reporting required |
| Best for | One-time builders, developers | Contractors with frequent builds |
| Cost Structure | Fixed per project | Variable, based on volume and value |
Which One Is Right for You?
Choose a One-Shot Builder’s Risk Policy if:
- You’re building a single home, duplex, or apartment complex
- You don’t have multiple simultaneous projects
- You want a simple, all-in-one solution
Choose a Reporting Form Builder’s Risk Policy if:
- You manage multiple projects per year
- You want administrative efficiency and cost savings
- You have staff or a system in place to track and report projects accurately
Final Thoughts
Whether you’re building a single apartment complex or developing multiple properties throughout the year, understanding the differences between a One-Shot vs. Reporting Form Builder’s Risk Policy can help you make smarter insurance decisions.
The right policy ensures your investment is protected during construction and avoids unexpected gaps in coverage.
Need a Builder’s Risk Insurance Quote?
We specialize in helping developers, contractors, and property owners find the right builder’s risk insurance for their needs. Whether you need a one-time policy or a flexible reporting form solution, we can help.
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