Which type of insurance specifically covers damage to construction materials on site?

Builders risk insurance specifically covers damage to construction materials on site during a construction project. This type of insurance is designed to protect buildings under construction, including the materials, fixtures, and equipment that are part of the project. It applies to various risks that can occur during the construction phase, such as theft, vandalism, fire, or adverse weather conditions that might lead to damage.

This coverage is crucial for contractors and builders as it ensures that financial losses can be mitigated if unexpected incidents occur, allowing the project to continue without significant delays or financial strain. Other types of insurance mentioned do not cater specifically to the needs of construction sites, which is what makes builders risk insurance the right choice for this context.