Vacant policy vs builders risk

[Ben C.]

Hello, Can someone shed some light on this for me. What is the difference between a vacant home policy and a builders risk policy? I am deciding between a gut Reno/addition and a tear down to the basement. My insurance agent told me the vacant home policy is applicable if I go the first route and builders risk if I go the second route (tear down to basement foundation). Do you agree? I will be GC and hiring the subs to do the work in order to save $. Thoughts? Thank you!

[Patrick Liska]

Not an insurance agent but i believe the difference is, the Vacant policy covers the existing structure plus improvements as they are done. the builders risk insures the material and i believe aspects of the project as it is built, since there is no structure. so if you happen to take a builders risk and you are doing reno, it may not cover you for the existing structure .