Course of construction insurance such as a builders risk insurance policy has four methods of structuring. The first one of them is a single-shot insurance which is taken for individual buildings, and this are good for those who make less than five buildings a year as the rates are generally high.

The next one is monthly rate policy where the builder needs to list the new inventories every month, and the rates are lower. If the building is completed within 5 months, he would need to pay less.

In case of annual rate method, any inventory that he acquires and submits reports for is covered for next 12 months.

The last one which is the most convenient is the blanket annual deposit which allows the builder to pay once for all the anticipated buildings in the next 12 months and homes that will be there in the inventory for the next one year. There needs to be an audit for the same at the end of the tenure.

The builder’s risk course of construction insurance policy generally covers fire, lightning, wind and many other things. In some cases, the owner may ask the builder to renovate the property, and his own insurance may cover all the risks. In those cases, the builder may not need to take the insurance.