Builder’s Risk Soft Cost Endorsement

Soft costs can be covered in a builder’s risk policy through a soft cost endorsement. Soft costs are those costs incurred as the result of a delay to the completion of the project. Assuming you pay the additional premium associated with this soft cost endorsement, you want to ensure that it covers those delay-related costs that will be incurred as a consequence of a delay from the anticipated substantial completion date to the (delayed) actual substantial completion date. The delay would need to be caused by a covered loss that delayed the project beyond the anticipated substantial completion date. Thus, just because the project is delayed does not mean the builder’s risk soft cost endorsement will be triggered. 

Builder’s risk insurance is a must-have insurance to insure risks during the course of construction.  The builder’s risk soft cost endorsement is an endorsement to provide optional coverage.


Please contact David Adelstein at or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.


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