Driveway Builder's Risk Insurance: During Construction Coverage

What Is Driveway Builder’s Risk Insurance and Why It Matters

Driveway Builder’s Risk Insurance is a short-term property policy that covers your new driveway while it is under construction. It pays to repair or re-pour the slab if fire, vandalism, lightning, wind, theft of materials, or certain “acts of God” damage the work before you even get to use it.

Standard homeowner’s insurance excludes “property in the course of construction,” so if the fresh pour is ruined overnight, you could be paying thousands out of pocket. A small builder’s risk policy closes that gap for as little as the cost of a take-out pizza.

What Driveway Builder’s Risk Insurance Actually Covers

Covered Perils

• Fire, smoke, lightning, explosion
• Windstorm, hail, weight of ice or snow
• Theft of forming lumber, rebar, or curing blankets
• Vandalism and malicious mischief
• Vehicle or aircraft impact (yes, the delivery truck that jumps the curb)
• Collapse due to specified causes

Soft Costs You Can Add

Upgrade the policy and you can also insure:

• Architect or engineer re-design fees
• Permit re-application costs
• Additional interest on construction loan if the job is delayed
• Lost rental value if a tenant can’t use the parking area

Common Exclusions

• Faulty workmanship (the concrete cracks because the mix was wrong)
• Wear and tear, gradual deterioration
• Earth movement (earthquake, landslide, settlement) unless specifically endorsed
• Water damage from weather unless the policy lists “wind-driven rain”
• Tools belonging to the contractor (they need their own inland marine policy)

Who Needs the Policy—You or the Contractor?

Homeowner-Owned Policies

If you signed the driveway contract as the “owner-builder,” you are the one with insurable interest. Buying the policy yourself gives you control over limits, deductibles, and claim proceeds.

Contractor-Provided Policies

Some concrete crews purchase a “blanket” builder’s risk that covers every job for one month. Ask for a certificate of insurance naming you and your property address as additional insureds; otherwise the check could legally be sent to the contractor alone.

Best Practice: Dual Interest

List both parties on the declarations page. That way, if the worst happens, everyone with skin in the game gets protected and disputes over who cashes the check disappear.

How Much Coverage Do You Need?

Calculate the Replacement Value

1. Get the final contract price (e.g., $9,500 for 900 sq ft of stamped concrete).
2. Add the cost of ripping out and hauling off damaged material—usually 15-20 % of the pour price.
3. Add sales tax and any permit re-inspection fees.
4. Round up to the next $1,000 increment for inflation cushion.

Example: $9,500 × 1.20 = $11,400 → round to $12,000 policy limit.

Don’t Forget the Materials in Transit

If the crew is storing $2,000 of rebar or paver bricks in your yard overnight, make sure the policy limit includes those “off-premises” materials. Some carriers give 10 % of the dwelling limit for materials within 100 ft of the premises.

Typical Cost and Money-Saving Tips

Quick Price Ranges

• Basic asphalt driveway (3-day job): $150–$250 for $10 k coverage
• Stamped concrete with coloring (7-day cure): $250–$400
• High-end paver courtyard (14-day schedule): $400–$600

Discounts to Ask For

• Package with your existing homeowner carrier—up to 15 % off
• Security-camera credit (Ring or Nest footage deters vandals) – 5 %
• Fire-hydrant within 500 ft – 3 %
• Higher deductible ($1,000 instead of $500) – saves 10-12 %

Shorten the Policy Term

Insure only the period of greatest risk—usually from excavation to final cure (7-30 days). Cancel the policy the day you drive on the new surface and you’ll get a pro-rated refund.

Step-by-Step Buying Guide for Homeowners

1. Ask the Contractor Early

Bring up insurance at the estimate stage. A professional will already have a preferred agent or at least know the coverage limit you should shop for.

2. Collect Job Details

• Start and end dates
• Total contract value and material list
• Site security (fencing, lighting, cameras)
• Distance to fire station and hydrant

3. Compare Three Carriers

Look for admitted insurers rated A- or better by AM Best. Read the fine print on theft-of-materials sub-limits and vandalism deductibles.

4. Request a Certificate

Make sure the certificate lists your lender if you have a construction loan, and that loss proceeds are payable to “you and/or your contractor as their interest may appear.”

5. Keep Documentation

Take dated photos at each phase: base gravel, rebar grid, final pour. In a claim, photos prove the stage of completion and the extent of damage.

How to File a Claim Fast

1. Mitigate Further Damage

Cover exposed rebar with tarps, fence off the area, or hire a night watchman if theft is ongoing. Your policy requires reasonable “due diligence.”

2. Call the 24-Hour Hotline

Most carriers open a claim file within two hours. Ask for the adjuster’s cell number and the claim number to reference in all emails.

3. Gather Evidence

• Photos and drone video
• Weather report PDF from the nearest NOAA station
• Police report for theft or vandalism
• Contractor’s written estimate for re-work

4. Track Additional Living Expense

If you can’t park in your driveway and must rent a garage space, keep receipts. Some policies reimburse up to $5,000 for “loss of use.”

5. Follow Up Weekly

Adjusters juggle dozens of files. A polite weekly email keeps your driveway claim at the top of the stack.

Frequently Asked Questions