USA Capitalizing Builder's Risk Insurance

Jan 26, 2021
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United States

Our company constantly has a lot of construction projects going on, and one thing that has come up recently is builder's risk insurance. We have typically do not have separate insurance on projects. The insurance would normally be reflected in the rates the contractor is charging us. However, we're considering getting an OCIP policy, I think that's what it's called, that would save us money on some of our larger projects.
What I'm wondering is if this could be capitalized into the cost of the project. Normally it would be clear that you wouldn't capitalize general insurance (like general liability insurance) into specific projects, but this seems to be different.
What I find in guidance is just the basic "any costs directly attributable to placing the asset in service can be capitalized". I can't find anything in GAAP that specifically applies to this scenario, other than ASC 970, which doesn't apply since this is an internal use property, not something we're selling or renting.
Just wanted to throw this out there and see what you guys thought.



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