Whether you are breaking ground on a luxury waterfront home in Kennebunkport, developing a commercial property in Portland, or flipping a house in Wells, a construction site is highly vulnerable. Before the drywall is up or the roof is secured, your investment is exposed to weather, theft, and vandalism.
At Sevigney Lyons Insurance Agency, we provide comprehensive Builders Risk Insurance (also known as Course of Construction insurance) tailored for the unique challenges of building in Southern Maine. More than just a safety net, this coverage is critical to securing your construction loan and ensuring a single unexpected disaster doesn’t derail your entire project.
Builders Risk Insurance is a specialized type of property insurance designed specifically for buildings that are under construction or undergoing major renovations. Technically classified under Inland Marine insurance, this policy protects the property, the materials on-site, and the equipment while the structure is being built.
Because a building’s value increases as construction progresses, a standard commercial or personal property policy will not adequately cover the site. In fact, most commercial lenders and banks will not release draw funds or close a construction loan without an active Builder's Risk binder in place.
Construction is a collaborative effort, and the financial risk of property loss can fall on multiple parties depending on the contract structure. You need a Builder's Risk policy if you are a:
A well-structured policy from Sevigney Lyons protects against perils like fire, lightning, theft, vandalism, and extreme weather. We work with top-tier carriers to ensure your policy is customized to your project's scope, covering both Hard Costs and Soft Costs:
If a covered peril (like a fire) halts construction, the delays can cost you heavily. Soft cost coverage can reimburse you for:
Building in Maine comes with geographic realities that require a local, specialized insurance broker. Off-the-shelf policies from out-of-state call centers often contain dangerous exclusions for local perils. We ensure your project is covered for:
Coverage typically begins when the materials arrive on the job site or when construction officially commences. The policy usually ends when one of the following occurs: the policy expires, the building is occupied, the Certificate of Occupancy is signed, or the buyer closes on the property.
No. Builders Risk covers the building materials and the structure itself. Contractor’s tools, excavators, and bulldozers are covered under a separate Contractors Equipment Floater. If you are a contractor, we highly recommend reviewing our Artisan Contractors Insurance page to ensure your tools, liability, and Workers Compensation are fully sorted.
It is much harder, and significantly more expensive, to secure a policy once ground has been broken. Carriers view mid-construction policies as high-risk. It is imperative to contact us for a quote before your project begins.
Either party can purchase the policy, but it is critical that the policy explicitly names all key stakeholders to avoid coverage gaps. Typically, on high-end custom home builds in Southern Maine, the property owner purchases the policy to maintain direct control over the terms and claims process. However, if the contract specifies that the General Contractor (GC) provides coverage, the property owner, general contractor, and mortgage lender must all be listed as Named Insureds or Loss Payees so everyone's financial interest is legally protected.
For a new ground-up construction, the policy simply covers the total estimated cost of the new build. For a major renovation or addition (e.g., updating a historical home in Portland or expanding a oceanfront property in York), a Renovation Builders Risk policy is required. This policy must account for two distinct values: the existing structure (the initial property value) and the cost of the new improvements. Standard homeowners policies often void or suspend property coverage once structural renovation work begins, making this specialized policy essential.
Not automatically. Most standard policies lock in coverage based on your initial estimated Total Completed Value (TCV). If lumber prices spike during the build or the project scope expands via change orders, your project could easily become underinsured. We recommend building a 10% to 15% escalation endorsement into your policy from day one or notifying your Sevigney Lyons agent immediately as change orders are signed so we can update your policy limits accordingly.
While a "Special Form" policy covers most physical losses, standard Builders Risk policies routinely exclude:
Don't let a storm, fire, or theft turn your profitable development into a financial disaster. At Sevigney Lyons, we understand the pace of construction and the strict requirements of lenders. We provide rapid, accurate quoting so you can get your binder and get to work.
