Understanding Course of Construction Insurance: Why It's Critical for Every Builder

Whether you’re developing a single residential property or leading a multi-million-dollar commercial construction project, you’re exposed to a wide array of risks. Fires, theft, natural disasters, or even unexpected vandalism can cause severe delays and losses. That’s why course of construction insurance is not just recommended—it’s essential. At RF Insurance Agency, we provide tailored solutions to protect your project from groundbreaking to final walkthrough.

What is Course of Construction Insurance?

Also referred to as builders risk insurance, course of construction insurance is a specialized type of property insurance designed to cover buildings under construction. It shields against unforeseen events such as:

Fire

Theft

Vandalism

Weather-related damages (like windstorms and hail)

Explosions

Collapse or structural damage during construction

Unlike standard property insurance, this coverage is temporary and typically ends once construction is completed or the property is occupied.

Why You Need Course of Construction Insurance

Construction projects involve a lot of moving parts—contractors, subcontractors, materials deliveries, timelines, and weather dependencies. Without the proper protection, a single incident could derail months of work and incur massive costs.

Here are the key reasons to invest in course of construction insurance:

1. Financial Protection

Accidents and natural disasters happen when least expected. This policy reimburses repair and replacement costs, saving builders and property owners from financial ruin.

2. Contractual Requirement

Many lenders and clients require proof of course of construction insurance before construction even begins. It’s often a mandatory condition to secure financing or comply with municipal building codes.

3. Peace of Mind

Knowing you’re covered allows you to focus on timelines and quality without constantly worrying about “what-ifs.” With RF Insurance Agency as your trusted advisor, your risk is our responsibility.

Who Needs Course of Construction Coverage?

This insurance is a must for:

General contractors

Developers

Property owners

Home builders

Remodelers working on large-scale renovations

If you’re involved in a project where materials and labor are in motion, course of construction insurance ensures that investments made throughout the project are protected from start to finish.

What's Covered Under a Course of Construction Policy?

Here are the typical components included in a course of construction insurance policy:

Building Structure: The building under construction, including temporary structures.

Materials & Supplies: Stored on-site or in transit to the site.

Fixtures & Equipment: Items installed or to be installed.

Soft Costs: Some policies also cover project delays, including interest on construction loans, additional architectural fees, legal expenses, and more.

At RF Insurance Agency, we tailor each policy to fit the unique needs of your project. Whether you’re building from the ground up or remodeling, we work with multiple carriers to find the best protection at the most competitive rate.

What’s Typically Not Covered?

While coverage is broad, course of construction insurance does not usually include:

Employee theft

Faulty workmanship

Wear and tear

Earthquake or flood damage (unless specifically added)

Liability claims (this requires general liability insurance)

We’ll help you understand where one policy ends and another begins. Many of our clients bundle their coverage with general liability or commercial auto insurance to create a complete safety net.

How Much Does It Cost?

The cost of a course of construction insurance policy varies based on:

Project type and scope

Construction budget

Location and geography

Length of the project

Type of materials used

On average, you can expect to pay between 1% to 4% of the total construction budget. At RF Insurance Agency, we provide fast quotes, flexible payment options, and bundled savings.

Why Choose RF Insurance Agency?

Located in Indianapolis and serving clients across Indiana, Texas, Illinois, New York, and beyond, RF Insurance Agency is your independent insurance advocate. We’re not tied to one carrier—we shop the entire marketplace to provide best-in-class protection at competitive rates.

Here’s why thousands of contractors trust us:

Rapid quote turnaround

Certificate issuance in under 24 hours

Guidance on city, state, and lender insurance requirements

Lifetime service and renewal support

Bilingual customer support (English & Spanish)

5-star rated service by real contractors like you

With a deep background in contractor insurance and risk management, we go to bat for you so you can build with confidence.

Conclusion

When construction is underway, time, labor, and money are on the line every single day. Don’t let one incident turn your dream project into a financial nightmare. Protect your investment with course of construction insurance from a trusted agency that puts your needs first. At RF Insurance Agency, we make it simple, fast, and affordable to get the protection you need.

Reach out today for a free quote or personalized consultation. One call can save your business thousands in unplanned costs. Start smart. Stay protected. Build with confidence.

Frequently Asked Questions (FAQs)

1. Is course of construction insurance mandatory?

It’s not legally mandatory in all cases, but it’s often required by lenders, clients, and city permitting offices before you begin work. Many jurisdictions or banks won’t approve construction without it.

2. Who buys course of construction insurance—the owner or the contractor?

Either party can buy the policy. It depends on the contractual agreement. Some owners require contractors to carry it; in other cases, the developer or owner secures it themselves.

3. Can it be bundled with other policies?

Absolutely. We recommend bundling it with general liability insurance, inland marine, or commercial auto to save money and broaden protection.

4. How long does the policy last?

A standard policy typically lasts 6 to 12 months, but we offer flexible terms based on the projected construction timeline.

5. What happens if my project is delayed?

If construction goes beyond the original completion date, the policy can often be extended for an additional premium. It’s crucial to notify your insurance provider before the expiration date.