Builders risk insurance is a great idea for anyone with a financial interest in the property that is being built or renovated. In some situations, a builder’s risk policy may be required to gain a building permit or approval.
You’ll need to reference the purchase agreement between you and the contractor. Many contractors purchase the policy to ensure the project has adequate risk coverage, some purchase agreements require the buyer to purchase the policy. You may also be required to include the other people who have a financial interest in the project.