Who buys builders risk on a Georgia project, the owner or the contractor?

The construction contract decides who buys builders risk insurance on a Georgia project, not state law or a fixed industry rule. Builders risk is a short-term property policy that covers a structure and the materials on site while it is being built, and either the property owner or the general contractor can be the one who purchases and holds the policy, depending on what the contract says.

On most Georgia residential projects, the owner buys the policy. The house under construction is the owner's asset, the owner is typically the one securing the construction loan if there is one, and many custom home contracts are written with the expectation that the owner arranges builders risk directly with their own agent. An owner building a home in Forsyth County, for example, often lists builders risk alongside the future homeowners policy as something arranged before the foundation is poured.

Commercial projects more often shift this responsibility to the general contractor. A contractor building a retail center or an office building typically already carries a broader insurance program across multiple job sites, and rolling builders risk into that program can be more efficient than a separate owner-purchased policy for each project. The general contractor then names the owner, lender, and any subcontractors as additional insureds on the policy, meaning those parties are also covered under that same policy, so everyone with a financial stake in the building is covered without buying separate policies.

Neither pattern is a legal requirement. A Georgia residential project can have the contractor carry builders risk if the parties agree to it, and a commercial project can have the owner carry it. What matters is that the construction contract states, in writing, which party is responsible and confirms the policy is actually in place before work starts. A gap where each side assumes the other bought the policy is how a job site ends up with no coverage at all during a loss.

This decision connects to two related questions: whether the coverage is legally required in the first place, covered in does Georgia law require builders risk insurance, and what the policy costs, covered in what does builders risk cost for a Georgia home build. General coverage details are on the builders risk insurance page and the Georgia builders risk insurance page. A coverage review can confirm the policy structure that fits a specific contract before it is signed.