Who is responsible for builders risk: owner or contractor?

Responsibility for builders risk should always be specified explicitly in the construction contract before work starts. The common default patterns: for owner-financed residential construction, the owner typically carries builders risk because they own the structure being built and are the loss payee on any insurance proceeds. For commercial construction, larger projects often have the general contractor carry builders risk as part of their bid, with the owner named as additional insured. Either party can name the other as additional insured to align interests. When the contract is silent, disputes can arise after a loss about who should have been carrying coverage. Best practice: write builders risk responsibility into the construction contract clearly, name both owner and lender as loss payees, and confirm policy bind before any site work begins.