BUILDING & RENOVATION
Key Essentials of Course of Construction Insurance
Starkweather & Shepley Insurance Brokerage Inc., a Top 100 brokerage firm that specializes in high-net-worth insurance, explains why course of construction coverage is critical when transforming a high-value residence.
EDITED BY EDELINDA BAPTISTA
R ENOVATING A LUXURY HOME IS AN INVESTMENT in lifestyle, design and long-term value. Whether you are restoring a historic property, expanding your waterfront residence or undertaking a full interior transformation, substantial renovations introduce a level of financial exposure that many homeowners underestimate.
One of the most common misconceptions among affluent homeowners is that their existing homeowners insurance policy will automatically extend to cover a major renovation. In most cases, it does not. That’ s where course of construction insurance becomes essential.
WHAT IS COURSE OF CONSTRUCTION INSURANCE? Course of construction insurance, also known as builder’ s risk insurance, is a specialized policy designed to protect a property while it’ s being built, renovated or structurally altered. Despite its name, the responsibility for securing this coverage often rests with the homeowner. While contractors typically carry liability and workers’ compensation insurance, those policies protect the contractor, not your home or your financial interest in the project.
A course of construction policy provides coverage for:
• The existing structure during renovation,
• Newly constructed additions,
• Building materials stored onsite,
• Fixtures and finishes awaiting installation,
• Certain soft costs and project-related exposures.
This policy is designed to respond to events such as fire, wind, theft, vandalism and other covered perils during construction— when a property is often at its most vulnerable.
PHOTOGRAPH: ADOBE STOCK / ANDY DEAN.
WHY A STANDARD HOMEOWNERS POLICY IS NOT ENOUGH A completed, occupied luxury residence carries a very different risk profile than a home under active construction. Once renovation begins, the exposure changes materially:
• Structural elements may be opened or temporarily unsupported,
• Portions of the home may be unsecured or entirely vacant for extended periods,
• Contractors and subcontractors are present daily,
• Tools, scaffolding and heavy equipment increase hazard,
• High-value materials may be delivered and stored before installation.
40 RHODE ISLAND MONTHLY’ S NEST | 2026