Builder's risk insurance for BRRRR

[Jessica Stern]

Hello, I am currently submitting all my paperwork for a new hard money loan through my LLC (for a single family BRRRR in Philadelphia). I am adding a half bath to the first floor, so my lender has mandated that I get builder's risk insurance. I'm fine doing so, but the rehab is expected to be completed in 6 weeks or less, so my concern is getting locked into a monthly builder's risk insurance payment longer than I have to be.

Do any of you have experience with this, and any watchouts I should look out for? For example, would I need to provide a certificate of insurance from my contractor, listing my LLC as an additional insured? Also a very basic explanation of what builder's risk insurance is, would be very helpful (first time buyer here)! Thank you in advance.