01
The structure under construction
The partially-built structure itself. Framing, sheathing, interior finishes — all covered up to the limit you select, which should equal the total completed value.
Line 03 · Builder's Risk
Builder's risk insurance for construction projects
Also called course-of-construction. Builder's risk protects the building itself, the materials on site, and the equipment installed — from the moment ground is broken through the moment the property is occupied. Loss before completion is on someone; the right policy makes sure it's not you.
50+ carriers shopped · 2 hours quote turnaround · COI in under 60 seconds
01 Coverage scope
What builder's risk insurance covers.
A standard builder's risk policy responds to the claim types below. Exact wording varies by carrier — we read each form so you don't have to.
02
Materials on the job site
Lumber, drywall, fixtures, and all materials delivered to the site but not yet installed. Includes materials in temporary storage containers or yards.
03
Materials in transit
Most forms cover materials while being delivered from supplier to site — limited to a sub-limit, typically $50K-$100K. Critical for high-value systems like HVAC or elevators.
04
Fire, lightning, explosion
Standard named-peril coverage. Fire is the #1 total-loss driver during construction; a single event can level an 80%-complete building overnight.
05
Theft & vandalism
Theft of copper, HVAC units, appliances, and tools from the site. Vandalism to work in progress. Active construction sites are prime targets — this coverage is not optional.
06
Wind, hail, and storm damage
Covered on most forms, with a separate wind/hail deductible in catastrophe-prone states (typically coastal FL, TX, LA, SC). Named-storm deductibles are a separate class.
02 Exclusions
What builder's risk does not cover.
Every policy has carve-outs. Understanding them up-front is how you avoid the “I thought that was covered” call after a loss. Pair Builder's Risk with the right sister lines and the gaps close.
Excl. 01
Faulty workmanship & design
A wall built out of plumb that has to be re-done isn't a builder's risk claim — it's a workmanship issue. Professional liability or a performance bond is what responds there.
Excl. 02
Employee tools & contractor equipment
Builder's risk covers the project, not the contractor's own equipment. Excavators, skid steers, tool trailers, and scaffolding belong on an inland marine / contractors equipment policy.
Excl. 03
Flood and earthquake
Standard forms exclude flood (including mudflow) and earthquake. Coastal or seismic-zone projects need flood or earthquake endorsements — separately priced, often substantial.
Excl. 04
Delay in completion (soft costs)
Lost rent, extended loan interest, liquidated damages — these are soft costs. Standard builder's risk doesn't cover them; a separate delay-in-startup endorsement does.
Excl. 05
Occupied buildings & renovations beyond scope
Once a project is occupied or goes beyond the scope defined at bind, builder's risk may stop responding. Renovation projects in occupied buildings need specific renovation endorsements.
03 Trade fit
Who needs builder's risk coverage.
How the same policy sits differently across the common trades we place. The underwriting market that fits you depends on the work you actually do on the job site.
T·01
General contractors
GC typically buys the builder's risk — their name on the policy, owner as additional insured. New construction is the bread-and-butter use case.
T·02
Developers & owners
On some projects the owner buys builder's risk and names the GC as additional insured. Contract language determines who buys.
T·03
Remodelers & renovators
Renovation BR requires specific endorsements — the existing structure exists before work starts, which changes coverage. Not every carrier writes it.
T·04
Custom home builders
Spec builds (building on spec before a buyer) are treated differently from contract builds. Vacancy provisions matter; policies need to match.
T·05
Solar & roofing installs
Large-scale solar arrays and commercial re-roofs often demand BR for the installed equipment value during the install window.
T·06
Site-prep contractors
Usually not the BR buyer — but excavation and demolition during early phases do need coverage coordination with the eventual BR policy.
T·07
Multi-family developers
Wood-frame multi-family is one of the most heavily underwritten risks in the market. Specialty markets only; rates can exceed 3% of hard costs in wood-frame states.
04 Cost
How much does builder's risk insurance cost for contractors?
Typical annual premium
1% – 3% of hard costs
A typical $2M new-construction project on a 12-month build-out runs $6,000 – $40,000 in BR premium depending on construction type, state, and deductible. Wood-frame multi-family in a catastrophe-prone state is the upper end; steel-frame commercial in a mild region is the lower end. We shop specialty markets to match the project's real risk profile, not a one-size rate.
| Factor | Impact | Detail |
|---|---|---|
| Construction value | Major | Rate is a percentage of the total completed value. Premium scales linearly with project size. |
| Construction type | Major | Wood-frame (Joisted Masonry) is 2-4x the rate of non-combustible (steel/concrete). Frame multi-family is the toughest to place. |
| Project duration | Major | Longer project = more exposure. Standard term is 12 months; each month extension adds premium. |
| Geographic risk | Moderate | Hurricane-zone Florida, wildfire-exposed California, tornado alley — all carry loaded rates and larger deductibles. |
| Site security | Moderate | Fencing, security cameras, and guards meaningfully reduce theft claims — carriers reward it with credits. |
| Deductible selection | Moderate | Higher deductibles ($25K vs $5K) can drop premium 10-20%. Match the deductible to what the owner / GC contract allows. |
| Contractor experience | Minor | New builders pay more. Five+ years of clean BR claim history unlocks preferred rates. |
05 In the field
Builder's Risk claim scenarios — from real contractor jobs.
Names changed, trades and outcomes preserved. These are the four builder's risk calls we actually field.
Case 01 · General contractor
Fire destroyed a framed structure at 70% complete.
An overnight electrical fire leveled a 6,000 sq ft single-family build that was fully framed and partially roofed. Total loss on the structure. Insured value: $860,000.
Outcome
Carrier paid out $835,000 (policy limit less deductible). GC rebuilt on schedule; owner's permanent financing stayed intact.
Case 02 · Roofer
A windstorm mid-install ripped off a new commercial roof.
Severe thunderstorm during the last day of a 40,000 sq ft membrane roof install. Winds hit 85 mph. Partial tear-off, water damage to insulation and decking below.
Outcome
BR paid for replacement of damaged materials, cost of re-installation, and water damage remediation. $92K total claim; policy held the job on-schedule.
Case 03 · Developer
Copper theft three nights in a row.
Wood-frame multi-family project in an urban area. Over three nights, thieves stripped all copper piping from the first-floor units. Police reports filed; security wasn't adequate.
Outcome
BR covered replacement of materials and extended the deductible accordingly. Carrier's security consultant worked with the developer to install motion-activated floodlights and cameras — no further theft through completion.
Case 04 · GC
Hail damaged stored materials.
Golf-ball-sized hail in a Midwest storm damaged $48K of HVAC equipment and light fixtures stored on site in a covered area. Equipment was still in crates; insurance records were intact.
Outcome
Full replacement value paid out. Claim closed in 21 days. Project timeline slipped a week waiting on replacement HVAC; no contract penalties triggered.
06 Frequently asked
Frequently asked about builder's risk.
The questions contractors ask before they pick up the phone. If yours isn't here, the fastest answer is a call — (484) 444-3503.
Q.01What does builder's risk insurance cover?
Builder's risk covers the structure under construction, materials on site, and (with sub-limits) materials in transit. Standard perils include fire, wind, hail, theft, vandalism, and water damage. Flood and earthquake require separate endorsements in exposed regions.
Q.02How much does builder's risk insurance cost?
Premium is typically 1% – 3% of the total completed construction value, spread over the project term. A $2M wood-frame build might run $20,000; a $2M steel-frame commercial build might run $8,000. Construction type, state, and deductible are the biggest drivers.
Q.03Who buys builder's risk — the GC or the owner?
Contract language governs. On many projects the GC buys and names the owner as additional insured. On some — especially larger commercial and multi-family — the owner buys and names the GC. Always read the contract before quoting so limits and buyer match the requirement.
Q.04Does builder's risk cover my tools and equipment?
No. BR is for the project, not the contractor's property. Tools, heavy equipment, trailers, and scaffolding belong on an inland marine or contractors equipment policy. We bundle both lines when it makes sense.
Q.05Can builder's risk cover renovation projects in occupied buildings?
Yes, but it needs renovation-specific endorsements — standard new-construction BR forms don't fit. Renovation BR treats the existing structure differently and requires careful underwriting. Not every carrier writes it.
Q.06What is a delay in startup (DSU) endorsement?
DSU (sometimes called soft-cost or delay-in-completion) covers lost rental income, extended loan interest, and other soft costs that accrue if a covered loss delays completion. Standard BR doesn't include these — DSU is a separate, carefully-underwritten add-on that most lenders require on commercial projects.
Q.07When does the builder's risk policy end?
At the earliest of: completion + final inspection, occupancy of the building, expiration of the policy term, or abandonment. After that, property insurance takes over. Timing the handoff matters — lapses create gaps.
Q.08Is flood covered on builder's risk?
Standard forms exclude flood. If your project is in a FEMA flood zone or a coastal area, you need a flood endorsement or a separate flood policy through NFIP or the E&S market. Flood endorsements for active construction are limited and often expensive — plan early.
Q.09Can I get a COI for builder's risk quickly?
Once bound, we issue BR COIs in under 60 seconds. If a project is starting Monday and you need proof of BR by Friday, call us Thursday — bind time varies by carrier and complexity but 1-2 days is typical.
Q.10What if the project runs past the 12-month term?
Extensions are available but need to be requested before expiration. Post-expiration, coverage stops — any loss after the term is not covered. Carriers charge a pro-rata additional premium for extensions, and sometimes re-underwrite if the project has materially changed.
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