Buildings

Insurance During Construction
Protecting Your Building From Start to Finish
When you’re investing in a new shop, barn, or post-frame building, it’s important to have the right
insurance in place before construction begins. There are two common types of coverage used during
the build phase — Builder’s Risk Insurance and Course-of-Construction (Roll-Over) Insurance

�1. Builder’s Risk Insurance
Also known as “construction insurance”, this policy protects the structure, materials, and
equipment while your building is being constructed.
It typically covers:

• Fire, theft, vandalism, wind, or storm damage
• Materials and supplies on site or in transit
• Temporary structures such as scaffolding or fencing

A builder’s risk policy is normally purchased for the duration of construction only, and it ends
when the project is completed or occupied. At that point, the owner would start a standard property
or farm policy.

This option is often used when:

• A lender requires a specific builder’s risk certificate
• The builder or contractor holds the insurance
• There are multiple parties involved in the project

2. Course-of-Construction (Roll-Over) Policy
Many owners choose to insure their project through their own insurance provider using what’s called
a course-of-construction endorsement.
This type of policy:

• Begins as builder’s risk coverage while the building is under construction
• Automatically converts into a regular homeowner, farm, or commercial policy once the building is
complete
• Is typically less expensive because it’s treated as one continuous policy

This approach is ideal for clients who are keeping and using the finished building. It also avoids
policy gaps and simplifies paperwork since coverage simply “rolls over” when construction ends.

� Who Should Arrange the Coverage
We recommend that the property owner contact their insurance provider before construction begins to
confirm which type of policy is right for their situation.
Most insurers (such as SGI, Wawanesa, Co-operators, or Intact) can add a course-of-construction
endorsement to your existing policy at minimal cost.

� Suggested Wording for Your Policy
When setting up insurance, ask your provider to include:

“Coverage to extend to materials delivered and stored on site until the building is complete and
occupied.”

This ensures that both the owner and Bakke Buildings are protected from loss due to fire, storm, or
theft during the build.

� Our Commitment
At Bakke Buildings, we take pride in building durable, high-quality structures — and we want our
clients protected every step of the way.
If you’re unsure which insurance option is best for your project, we’re happy to help guide you or
coordinate directly with your insurance agent.