Your Homeowners Policy Starts When Construction Ends, Builder's Risk Covers Everything Before That
Your homeowners policy covers a completed, occupied dwelling. The moment construction begins, you're in a coverage gap. Builder's risk insurance fills that gap — covering the structure, materials on site, and completed work against fire, wind, theft, and vandalism from groundbreaking through certificate of occupancy. At Crosby & Henry, we help Michigan families get this coverage placed correctly before the first crew arrives.
What Builder's Risk Insurance Covers and Why It Matters in Michigan
Builder's risk insurance covers a structure under active construction or significant renovation against the perils most likely to cause loss during that vulnerable phase. That includes the framing, roofing, and structural components already in place, as well as materials stored on site or in transit to the job.
In Michigan, construction projects that extend into fall and winter face risks that most homeowners don't anticipate: ice accumulation, snow load on unsheathed framing, freeze damage to plumbing rough-in, and wind events against structures that aren't yet closed in. A builder's risk policy is built for exactly these conditions — a homeowners policy is not.
Covered perils typically include:
- Fire and lightning
- Wind, hail, and ice damage
- Theft of materials on site or in transit
- Vandalism to the structure or stored materials
- Collapse during construction
The policy period runs with your project timeline. When the municipality issues a certificate of occupancy, the builder's risk policy ends and your homeowners policy begins. We coordinate that transition so there's no gap between the two.
Your Contractor's Policy Protects Your Contractor Not You
Many homeowners assume the general contractor's builder's risk policy covers their interests. In most cases, it doesn't — at least not adequately. A contractor's policy is structured to protect the contractor's liability and their own financial exposure. Your investment in the structure, the custom finishes, and the materials you've selected may not be covered to the standard you need.
A homeowner-purchased builder's risk policy ensures the coverage is oriented toward your loss — your structure, your materials, your project. You're not dependent on a contractor's policy limits, their carrier's claims process, or whether their coverage was maintained throughout the job.
This is especially important on high-value custom builds and significant renovation projects where the homeowner's financial exposure is substantial from day one.
Who Needs Builder's Risk Coverage in Michigan
Builder's risk insurance applies to two common situations, and both are underserved by standard personal insurance policies.
New home construction: If you're building from the ground up, your homeowners policy doesn't exist yet — there's no completed dwelling to insure. Builder's risk coverage attaches at groundbreaking and remains in place until the certificate of occupancy is issued. This is the period of greatest exposure: an incomplete structure, materials staged on an open lot, and a project timeline that may run six months to over a year.
Major renovation: If you're undertaking a significant addition, gut renovation, or structural remodel on an existing home, your current homeowners policy may have coverage gaps during the renovation period. Depending on the scope of work, your carrier may exclude or limit coverage for damage that occurs while the home is under substantial construction. A builder's risk policy fills that gap.
In both cases, the independent agency relationship matters. We review your existing coverage, identify where the gap begins, and place a builder's risk policy that coordinates cleanly with your homeowners coverage — before and after the project.
Why Michigan Families Work With Crosby & Henry on Construction Coverage
As an independent agency, we work with multiple top-rated carriers — including Citizens, Liberty Mutual, Safeco, Nationwide, and Hartford — which means we can match your project to the right policy rather than fitting your situation into a single carrier's product.
Builder's risk isn't a product most homeowners purchase more than once or twice in a lifetime. Getting the coverage structure right — limits, policy period, materials coverage, and the transition to a permanent homeowners policy — requires an agent who will walk through the details with you, not hand you a quote and a policy number.
Our clients in Grand Rapids, Grand Haven, Kalamazoo , and Traverse City have trusted us with this kind of coverage decision for generations. When the project is done and the builder's risk policy converts to a homeowners policy, we're the same agency handling both.
Does my homeowners insurance cover my house while it's being built?
Standard homeowners policies are designed for completed, occupied dwellings and typically do not cover a structure under active construction. Builder's risk insurance is the correct product during the construction phase — it covers the structure and materials from groundbreaking until a certificate of occupancy is issued.What does builder's risk insurance cover in Michigan?
Builder's risk coverage applies to the structure under construction and materials stored on site or in transit against covered perils including fire, wind, hail, ice, theft, and vandalism. In Michigan, coverage during fall and winter construction is particularly important given the risk of snow load, freeze damage to rough-in plumbing, and wind events on structures that aren't yet closed in.Do I need builder's risk insurance if I'm doing a major renovation — not building from scratch?
Yes, in many cases. A significant renovation — particularly one involving structural work, additions, or periods when the home is partially open to the elements — can create coverage gaps in your existing homeowners policy. A builder's risk policy covers the renovation period and coordinates with your homeowners coverage before and after the project.Can I rely on my contractor's builder's risk policy to cover my home?
A contractor's builder's risk policy is structured to protect the contractor's interests, not the homeowner's. It may not cover your full investment in the structure, materials, or custom finishes, and you'd be subject to the contractor's carrier and policy limits in the event of a loss. A homeowner-purchased policy keeps the coverage aligned with your interest.How does builder's risk insurance work with my homeowners policy?
The two policies are designed to work in sequence. Builder's risk covers the construction phase; your homeowners policy begins when construction is complete and the certificate of occupancy is issued. At Crosby & Henry, we coordinate the transition between the two policies so there's no gap in coverage at the point of completion.