Is builders risk required for Georgia construction projects?

Builders risk insurance is not required by Georgia state statute, but it is practically required by lenders financing construction. When a lender funds a construction loan, the building under construction is the collateral, and the lender requires insurance covering that collateral during the construction period. Standard homeowners or commercial property policies do not cover buildings under construction, so a specialized builders risk policy is required. Cash-funded projects (no lender) can technically skip builders risk, but the financial exposure during construction is substantial. A fire or major weather event during framing can wipe out months of work and material investment. For all but the smallest projects, builders risk is the responsible choice.