Builders’ Risk Insurance — Will Your Project Stay Afloat? New ACE Paper Explores Water Damage Coverage

PHILADELPHIA--(BUSINESS WIRE)--When water rises as a result of torrential rain, storm surge, melting snow or any other weather-related event, it leaves destruction in its wake. But that isn’t the only way that water can be highly destructive. A slow leak can be just as damaging to construction projects as a sudden flood. When it comes to builders’ risk insurance, where the water comes from and how the damage occurs can make all the difference in respect to policy coverage.

ACE Group today released a new paper that examines how builders’ risk policies often distinguish between water damage, flood or storm surge, and how the policy wording can impact coverage. It also outlines steps builders and contractors can take to proactively address this risk and, ultimately, to help avoid severe consequences. “Builders’ Risk: Water Damage or Flood?” was co-authored by Mark Gadaire, Senior Vice President, ACE Inland Marine, and Raymond Szczucki, P.E., ARM, Account Engineer, ACE Inland Marine.

“Whenever water finds its way onto a project and ends up where it doesn’t belong, major setbacks and costly damage can follow. Too often, policyholders don’t recognize the differences in policy wording that determine what and how much coverage is provided when these types of events happen. It’s important to have a clear understanding of this when obtaining coverage, not after a loss,” said Mr. Gadaire. “Policyholders should also be aware of the steps they can take to protect construction sites from damage. By proactively ensuring the right coverage is in place and making water damage prevention an everyday part of project culture, builders and contractors may be able to reduce the likelihood and/or limit the financial impact of a loss.”

Key highlights from ACE’s paper include:

  • The importance of recognizing the many potential sources of water damage, and understanding that, regardless of how well a project is managed, damage can still occur
  • Understanding why it is critical to know what is covered by a specific policy when obtaining coverage, not after a loss
  • How proactively identifying risks on a construction site may help mitigate future losses
  • What a comprehensive prevention plan might look like, including steps for pre-task planning, proper work sequencing, and robust response measures if leaking water is found

To access the paper, please visit our website. For more information about ACE’s Builders’ Risk offering and other Inland Marine products and services, visit The material presented in this report is not intended to provide legal or other expert advice. It is presented as information only. Readers should consult legal counsel, insurance brokers or other technical experts, as applicable, with any specific questions they may have. The descriptions of insurance coverage terms are summaries only. Readers should review their insurance policies closely for the actual terms and conditions of the contract.

About ACE Group

ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at, or follow ACE on Twitter,



ACE Group
Carla Ferrara, 215-640-4744