Theft Liability - owner or contractor?

[Kateva R.]

Would love some wisdom on theft liability when remodeling and working with a contractor. We're under contract on a duplex and will be undergoing a 2-3 month remodel (all cosmetic/equipment repairs). We've been advised by our insurance agent that theft isn't covered on the builders risk policy, and every policy excludes theft during remodel or construction phase since it is too common and easy for fraud. Our contractor would like us to sign an agreement that in the event of theft, we will be responsible and cover his losses up to x amount. His concern is an active robbery while he/the team is working (not break ins overnight). Is an agreement like this normal? Thank you!