The builder’s risk insurance policy will pay for damages up to the coverage limit in the policy. The limit must accurately reflect the total completed value of the structure (all materials and labor costs, but not including land value).
The construction budget is the best source for determining the appropriate limit of insurance.
Builder’s Risk insurance policies can often be purchased in terms of three-months, six-months, or 12-months. If the project is not completed by the end of the initial policy term, it can often be extended, but usually only one time.