Under Construction Building Insurance

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Total Cover

100% Claim Settlement





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Client Testimonials​

Prakhar Srivastava
2 months ago
They guided me through the intricacies of various insurance options, ensuring I fully understood each policy's coverage and benefits. Their transparency and willingness to address all my concerns instilled a sense of trust and confidence in their services.
punitchibber chibber
2 weeks ago
Good service whenever we call to them they give positive response i have a claim they support and my claim got settled
Agam Kansal
2 weeks ago
Brilliant place for all types of insurance. Always connected with every claim settlement.. Hassle free.. Kudos to beemawala..
rahul goyal
6 months ago
Beemawala and team is a best Company for take any type of insurance. They support and take care of your claim . Thanks a lot for your support of my claims many times .
Devyani Kharbanda
2 years ago
Shantanu is professional and very prompt in responding to my questions. I’m a repeated client and he’s been supportive throughout. I highly recommend his services. I wish him and his team good luck for future.

What is Under Construction Building insurance Policy ?

Under Construction Insurance, also known as Builders Risk Insurance or Course of Construction Insurance, is a specialized policy designed to protect construction projects during the building phase. It safeguards builders, contractors, and property owners from financial losses arising due to various risks, including fire, vandalism, theft, natural disasters, and other unforeseen events while a structure is under construction.

This policy typically covers not only the structure being built but also the materials, equipment, and machinery on-site. It serves as a crucial safety net, ensuring that any unexpected damage or loss doesn’t become a financial burden. Without it, construction projects could face significant setbacks, costly delays, and disputes over who should bear the financial brunt of these setbacks.

Under Construction Insurance can be tailored to suit the unique needs of each project, whether it’s a residential home, commercial building, or infrastructure development. It’s an essential tool for mitigating risks and ensuring that construction ventures proceed smoothly, giving stakeholders peace of mind and financial protection until the project reaches completion.

Example :- Under Construction Fire Insurance would indeed come to the rescue in the unfortunate event of a high-speed tornado damaging a building under construction, as in Mr. Ramesh’s case. Here’s how it helps:

1. Coverage for Damage. Under Construction Insurance covers damage caused by various perils, including natural disasters like tornadoes, fires, and storms. In this scenario, the policy would kick in to cover the significant damage to the building.

2. Material and Equipment: This insurance doesn’t just cover the structure but also the materials, machinery, and equipment on the construction site. So, the cost of the construction materials damaged by the tornado would be covered.

3. Financial Protection: Construction projects involve substantial investments. When a disaster like this strikes, it could lead to severe financial setbacks. However, with Under Construction Insurance, the financial loss is mitigated as the policy covers the expenses of rebuilding and replacing damaged components.

4. Project Continuation: Without insurance, the construction project could grind to a halt, causing delays and additional expenses. With insurance, the necessary funds are available to resume work promptly.

In Mr. Ramesh’s case, the Under Construction Fire Insurance policy would save his company from bearing the entire burden of the tornado’s destruction, ensuring the project continues, and financial losses are minimized. It exemplifies the importance of this insurance for construction ventures.

Coverages of Under Construction Building Insurance Policy

Property Damage

This insurance covers damage to the building structure itself. It includes protection against risks like fire, storms, vandalism, and other perils. If the construction site suffers damage, the policy will fund the necessary repairs or reconstruction. 

Materials and Supplies

Under Construction Insurance covers the construction materials, supplies, and equipment stored on-site. In case of damage or theft, the policy compensates for the loss or damage, ensuring that the project can continue without significant delays.

Temporary Structures

Many construction sites have temporary structures like scaffolding and sheds. This insurance extends coverage to these structures, protecting them from various risks.

Third-Party Liability

In some cases, damage from the construction site can affect neighboring properties or individuals. This policy can provide liability coverage, paying for damage claims made by third parties due to construction-related accidents or incidents.

Soft Costs

These are expenses beyond physical damage, such as architect fees, permits, and legal fees. Under Construction Insurance can cover these soft costs, ensuring that the project’s financial integrity is maintained.

Debris Removal

If a covered event results in debris, this insurance helps pay for the removal and disposal of debris from the construction site.

Professional Fees

Under certain conditions, this insurance can cover professional fees required to assess and repair damages caused by covered events.

Additional Add-ons Under Construction Building Insurance Policy

While an Under Construction Insurance Policy provides comprehensive coverage for various risks, policyholders can opt for additional add-ons or endorsements to enhance their protection further.

Earthquake Coverage

This add-on covers damages caused by earthquakes, which may not be included in standard policies.

Terrorism Coverage

This endorsement covers damages caused by acts of terrorism or related events, such as sabotage

Design Changes

If the construction project undergoes significant design changes, this add-on ensures that the policy remains relevant to the updated project scope.

Enhanced Theft Coverage

For construction sites in high-risk areas, enhanced theft coverage can provide protection against theft or vandalism of construction materials and equipment.

Machinery and Equipment Breakdown

This endorsement covers repair or replacement costs for machinery or equipment breakdown during construction.

Factors Determining the Premium of Under Construction Building Insurance Policy

The premium for an Under Construction Insurance Policy is determined by various factors that assess the level of risk associated with the construction project.

Construction Type

The nature of the construction, such as residential, commercial, industrial, or infrastructure, affects the premium. Certain types may have higher risk levels, leading to higher premiums.


The geographical location of the construction site is a significant factor. Sites in areas prone to natural disasters like earthquakes, floods, or hurricanes may have higher premiums.

Project Value

The total estimated value of the construction project plays a vital role. Higher-value projects typically have higher premiums due to the increased exposure to financial loss.


The length of the construction project’s timeline matters. Longer projects may be exposed to more risks, leading to higher premiums.

Construction Materials

The types of materials used in the construction can impact the premium. Non-standard or specialized materials may increase the risk and, subsequently, the premium.

Security Measures

The security measures in place at the construction site, such as surveillance systems and access control, can affect the premium. Enhanced security can lead to lower premiums.

History of Claims

A construction company’s past claims history, including any previous claims for losses during construction, can influence the premium.


The deductible amount chosen by the policyholder affects the premium. Higher deductibles can lead to lower premiums but require the insured to cover more of the initial costs in case of a claim.

Subcontractor Risk

If subcontractors are involved in the project, their track record, reliability, and insurance coverage can influence the premium.

Add-on Coverage

The inclusion of additional coverage options, such as earthquake or terrorism coverage, will impact the premium amount.

Policy Limits

Higher coverage limits will lead to higher premiums as they increase the insurer’s potential liability.

What is the diffence Between Contractor All Risk Insurance and Under Construction Building Insurance Policy ?

Aspect Contractor All Risk Insurance (CAR) Under Construction Building Insurance Policy
Provides broader coverage for risks during construction, including damage to the structure, materials, and liability.
Primarily focuses on covering damage to the building under construction. May not include as extensive liability coverage.
Insured Parties
Typically, contractors, subcontractors, and sometimes the project owner.
Usually taken out by the property owner or developer of the construction project.
Covers all risks except those explicitly excluded in the policy.
Tailored specifically to cover risks during the construction phase.
Liability Coverage
Often includes comprehensive liability coverage for bodily injury or property damage to third parties.
May have limited liability coverage, primarily focusing on the construction site.
Can be customized to suit the specific needs of the construction project and the parties involved.
Less customizable, as it primarily addresses the property owner's interests.
Policy Period
Typically covers the entire construction period, including delays and extensions.
Covers the construction phase until the project is completed and handed over.
Parties Involved in Claims Settlement
Multiple parties (contractor, subcontractor, owner) may be involved in claims settlement.
Typically involves the property owner and the insurer for claims settlement.
Usually higher due to broader coverage and greater liability protection.
Generally lower premiums due to more focused coverage.
Protects contractors, subcontractors, and project stakeholders from various risks during construction.
Safeguards the property owner's investment by covering damage to the under-construction building.

How to Settle Under Construction Building Insurance Policy Claim



As soon as any damage or loss occurs, notify your insurance company or broker immediately. Quick reporting is crucial to initiate the claims process promptly.

Document Everything

Begin documenting the incident thoroughly. Take photographs and videos of the damage, make a list of damaged or lost items, and gather any relevant documents such as the insurance policy, construction plans, and receipts.

Contact Authorities

If necessary, inform the local authorities or relevant agencies about the incident, especially if it involves legal or safety issues.

Inform All Parties

If multiple parties are involved in the construction project, such as contractors and subcontractors, inform them about the incident and the insurance claim process.

Claims Form Submission

Contact your insurance provider to obtain the necessary claims forms. Fill out the forms accurately, providing all requested details about the incident, your policy, and the extent of the damage.

Evidence Submission

Attach all supporting documents, such as photographs, videos, invoices, and any other evidence requested by the insurer. Be sure to provide a detailed description of the incident.


The insurance company will assign a claims adjuster to assess the damage. The adjuster will visit the site to evaluate the extent of the loss and determine coverage eligibility.

Claim Evaluation

The insurance company will review your claim, assess its validity, and cross-reference it with the policy terms and coverage limits. They may request additional information if needed.

Claim Approval

Once the insurer is satisfied with the claim’s validity, they will approve it and provide details of the settlement amount and terms.


Upon approval, the insurance company will arrange for the settlement payment. This can be a lump-sum payment or a series of payments, depending on the policy and the nature of the claim.

Repairs and Reconstruction

Use the settlement funds to make the necessary repairs or continue construction. Keep records of all expenses related to the claim and repairs.

Exclusions of Under Construction Building Insurance Policy

War and Terrorism

Damage or loss caused directly or indirectly by war, acts of foreign enemies, hostilities, civil war, and terrorism are usually excluded.

Nuclear Perils

Any damage resulting from nuclear reactions, nuclear radiation, or radioactive contamination is typically not covered.

Willful Misconduct

If the insured or any party involved in the construction acts with willful misconduct or gross negligence, resulting in damage, it may not be covered.

Normal Wear and Tear

Damage due to normal wear and tear, gradual deterioration, or maintenance-related issues is usually not included.

Natural Settlement and Shrinkage

Damage arising from natural settling, cracking, or shrinkage of materials used in construction is often excluded.

Consequential Loss

Some policies may not cover losses due to economic or consequential losses, such as loss of profit, penalties, or contractual liabilities.

Design and Planning Errors

Exclusions may apply if the damage results from design or planning errors, including faulty architectural or engineering designs.

Illegal Activities

Damage caused by illegal activities, such as unlawful construction practices, may not be covered.

Pre-Existing Conditions

Damage or loss resulting from pre-existing conditions or defects in the construction site or structure may be excluded.

Intentional Damage

Any damage intentionally caused by the insured or other parties is typically not covered.

Property Left Unattended

If the property or construction site is left unattended for an extended period, certain policies may exclude coverage.

Acts of Public Authorities

Damage due to actions taken by public authorities, such as demolition orders or zoning changes, may not be covered.

Inadequate Maintenance

Damage caused by the failure to perform regular maintenance, inspections, or repairs is usually excluded.

Documents Required for Claim Settlement under Under Construction Building Insurance Policy

In case of Fire Claim

Duly Filled Claim Form

A claim form provided by the insurance company should be completed accurately and signed by the policyholder or their representative.

Policy Document

A copy of the Under Construction Building Insurance Policy, including all endorsements and addendums, should be provided.

FIR (First Information Report)

In cases of fire damage, an FIR filed with the local police is essential. It serves as an official record of the incident.

Fire Department Report

A report from the local fire department detailing the cause, extent, and impact of the fire incident should be submitted.

Evidence of Loss

Detailed documentation of the damage caused by the fire, including photographs, videos, or any other evidence, should be provided.

Construction Details

Documents related to the construction of the building, such as building plans, architectural drawings, and blueprints, may be necessary to assess the damage accurately.

Contractor and Supplier Details

Information about the construction contractor and suppliers involved in the project should be provided.

Invoice and Bills

Copies of invoices, bills, and receipts related to the construction materials, labor costs, and equipment used in the building should be submitted.

Repair and Replacement Estimates

Estimates from contractors or professionals for repairing or replacing the damaged portions of the under-construction building.

Completion Certificate

If available, a certificate indicating the stage of construction and the value at risk before the fire occurred.

Ownership Proof

Documents proving ownership or insurable interest in the under-construction building.

Police Investigation Report

If the fire required a police investigation, a report from the police regarding their findings and conclusions.

Any Other Relevant Documents

Any other documents requested by the insurance company or deemed necessary to evaluate the claim.

Contact Information for Claim Settlement: Under Construction Building Insurance Policy

If Policy Obtained through Agent/Broker

Claims are the reason we get a car insurance in the first place! Therefore, ensure the claim process of your desired car insurance is smooth and doesn’t take too long. When you’re in trouble, the last thing you want is, to spend all your time and energy in just filing a claim!

If Policy Obtained Directly from Insurance Company

Claim Settlements are basically getting your compensations done right. Claims being such an important part of a car insurance, check for your desired insurer’s claim settlement ratio so that you’re assured that no matter what, your claims will be settled!

Claim Contact Information for Policy from Beemawala.com

If you have taken the policy from Beemawala.com, please use the following contact details to register your claim.

  • Phone: +91-9654259715
  • Email: services@beemawala.com

Frequently Asked Questions: (FAQs) on Under Construction Building Insurance Policy

– An Under Construction Building Insurance Policy is designed to protect buildings during the construction phase, covering risks like fire, theft, vandalism, and more.
– Property developers, builders, contractors, and individuals overseeing construction projects usually buy this insurance.
– It typically covers damage due to fire, lightning, explosion, earthquake, flood, storm, theft, and vandalism during the construction period.
– The construction period refers to the duration from the start of construction until the completion of the project.
– CAR Insurance is a broader policy covering all risks related to construction, while Under Construction Insurance specifically covers named perils during construction.
– Yes, extensions can be arranged with the insurer to cover extended construction periods.
– Providing details of construction materials and their value may be necessary for accurate coverage.
– Coverage may still apply if the site is temporarily abandoned, but it’s essential to inform the insurer.
– Generally, no; design flaws and defects are typically excluded.
– Liability coverage is usually not included; you may need a separate liability policy.
– Premiums are determined based on factors like the project’s size, location, type, and coverage needed.
– DSU coverage compensates for financial losses caused by delays in the construction project due to covered perils.
– It may be possible to adjust coverages during the construction period, depending on the insurer’s terms.
– Notify the insurer immediately, document the damage thoroughly, and file a claim with all required documents.
– Failing to report changes promptly can result in coverage issues, so it’s crucial to keep the insurer informed.
– Projects like residential buildings, commercial complexes, industrial facilities, and infrastructure developments are eligible for coverage.
– Yes, Under Construction Insurance can also cover renovation or remodeling projects.
– Policies can often be transferred to the new project owner with the insurer’s approval.
– You may lose coverage, so it’s essential to extend it as needed.
– While not mandatory, it is highly advisable to protect your investment and mitigate financial risks during construction.

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