Policy Purchase: The owner, contractor, or project stakeholder purchases a Builders Risk insurance policy tailored to the specific project’s scope, value, and duration. Coverage Period: The insurance covers the construction period, from groundbreaking to project completion, and can be extended if needed. Covered Risks: The policy typically covers damages caused by fire, storms, vandalism, theft of materials, accidental damage, and certain natural disasters, depending on the policy specifics. Claims Process: If damage or loss occurs, the insured files a claim. An adjuster assesses the damage, and if approved, the insurer compensates for the repair or replacement costs. Project Completion: Once the project is completed and handed over, the policy usually ends. However, coverage can often be extended or converted into other insurance types if needed.