Property coverage for buildings under construction, from ground-up new construction to renovations, additions, and tenant improvements. Covers the structure, materials at the site, materials in transit, and often soft costs from covered delays. Single-project and reporting form options through multiple appointed builders risk carriers including US Assure.
Standard commercial property and homeowners policies don't cover buildings during construction. The exposure during construction is genuinely different: open structures vulnerable to weather and fire, valuable materials stored on site, materials in transit to the job, theft and vandalism exposure on active job sites, and the entire structure subject to total loss before any insurance value has been established. Builders risk insurance is purpose-built for this window between break-ground and project completion (or occupancy and permanent insurance).
The party responsible for buying builders risk varies by project structure. For owner-built projects, the owner typically buys coverage. For developer-built projects, the developer typically buys coverage. For general-contractor-built projects, the GC may buy a reporting-form builders risk covering all their projects, or the owner may buy a single-project policy. Construction contracts and lender requirements specify who buys, what limits apply, and what specific endorsements (delay coverage, materials in transit, off-site storage) are required. We help confirm contract requirements and route to the right builders risk carrier for the specific project type.
The building itself during construction: foundation, framing, walls, roof, all permanently installed components. Coverage typically applies to fire, lightning, explosion, weather, vandalism, theft, and other covered perils.
Construction materials and supplies stored at the project site or in storage trailers on site. Includes lumber, fixtures, components, equipment that will be installed in the project.
Materials being shipped to the project site, typically subject to per-shipment limits. Coverage applies from when materials are loaded for shipment until they arrive at the site.
Extra expenses from covered builders risk losses that delay project completion: additional loan interest, extended permit costs, additional architect/engineer fees, extended general conditions. Typically a separate endorsement.
Coverage often extends to temporary structures on the construction site (job trailers, scaffolding, fencing, temporary fixtures) used in support of the project.
Lender interests are protected via mortgagee or loss payee endorsement. Lenders typically require builders risk coverage with their interest noted as a condition of construction loan funding.
Standard builders risk excludes flood. NFIP commercial flood or private flood is needed for projects in or near flood zones, low-lying areas, or near bodies of water. Particularly important for coastal Florida construction.
Standard builders risk excludes earthquake. Available as a separate endorsement where offered. Lower exposure in Florida and Georgia than seismic zones but worth confirming for larger or critical projects.
Builders risk excludes losses caused by faulty workmanship, defective design, and faulty materials. These are construction quality issues, not insurable property losses. Contractor professional liability or design errors coverage addresses some of this exposure.
Builders risk is property coverage for the building under construction, not liability coverage. Third-party bodily injury and property damage claims arising from construction operations are covered under the contractor's general liability.
Tools and equipment owned by the contractor (rather than to be installed in the project) are typically covered under the contractor's own inland marine policy, not builders risk. The two coverages are coordinated but distinct.
Builders risk covers sudden and accidental losses from covered perils, not gradual deterioration, wear and tear, or losses caused by improper construction practices that develop over time.
Florida builders risk policies typically carry separate hurricane / named storm deductibles, similar to commercial property. Deductibles often run 2% to 10% of completed value depending on location, with coastal Florida projects facing higher deductibles than inland. Florida's hurricane season (June through November) overlaps with active construction season for many projects, creating meaningful exposure that needs to be planned around. Florida building code requirements (the Florida Building Code) apply during construction; meeting code matters both for permanent insurance after completion and for builders risk coverage during construction. Coastal high-velocity hurricane zones (HVHZ) in South Florida have specific requirements that affect both construction and insurance.
Georgia builders risk has more standard wind deductibles than Florida coastal exposure. Coastal Georgia projects (Savannah, Brunswick area) face hurricane exposure with deductibles often somewhere between Florida coastal and inland projects. Inland Georgia has meaningful tornado exposure, particularly in northern Georgia, which affects both perils covered and premium. Most Florida builders risk carriers also write Georgia, so the carrier landscape and program options are largely parallel across our two-state service area.
Builders risk coverage limits should match the total completed value (hard construction costs) of the project. For new construction, this is typically the total project budget or contract value at completion. For renovations and additions, the limit should reflect the value of the work being performed plus the value of any existing structure being insured under the builders risk policy.
Most builders risk policies are written for a specific term (typically 6, 9, or 12 months) or to a project completion milestone, whichever comes first. Coverage starts at break-ground (or with materials in transit, depending on policy form) and continues until the project is complete, the building is occupied, permanent property insurance takes effect, or the policy expires. Extensions are typically available if construction runs longer, often with additional premium for the extended period.
Single-project builders risk is the typical structure for one-off projects. Reporting form builders risk is used by contractors with multiple ongoing projects, with new projects reported to the carrier as they start. Reporting form is more efficient for active contractors but requires diligent reporting practices to avoid coverage gaps for unreported projects.
Deductibles on builders risk typically include a standard all-other-perils deductible ($1,000 to $10,000+ depending on project size) plus separate, larger deductibles for hurricane and named storm exposure in Florida (often 2% to 10% of completed value). Soft costs and delay coverage have their own deductibles, often expressed in days rather than dollars.
Coverage = project completed value
Single-policy coverage for one specific project, written to the project's total completed value. Typical for one-off custom builds, ground-up commercial projects, larger renovations.
Per-project + aggregate limits
Reporting form policy covering multiple projects as the contractor reports them. Per-project and aggregate limits structured to match the contractor's typical project portfolio. Common for active contractors with steady project flow.
Custom homes, spec homes, semi-custom builds. Coverage from break-ground through completion or occupancy. Typically the owner or builder buys coverage depending on financing structure.
Office, retail, industrial, multifamily, and similar commercial projects. Higher project values, often longer construction timelines, and more complex contract requirements for builders risk coverage and named insured structure.
Coverage for both the new work and (sometimes) the existing structure under construction. Coordination with the existing property insurance matters to avoid gaps or overlapping coverage disputes.
Build-outs for commercial tenants involve construction within an existing landlord-owned building. Builders risk for tenant improvements covers the improvements being installed; landlord property covers the existing structure.
Active contractors typically use reporting form builders risk covering multiple projects, with new projects reported as they start. More efficient than buying separate single-project policies, with disciplined reporting practices required.
Coastal Florida construction faces meaningful wind exposure, higher hurricane deductibles, and sometimes specialty market placement. Hurricane season overlap with active construction creates planning considerations.
Builders risk premium is driven by total project value, construction type (frame, masonry, fire-resistive), project duration, location (coastal vs inland, urban vs rural), perils covered, deductible structure, and any specific endorsements (delay coverage, off-site storage, increased transit limits). Higher-value projects, longer durations, and coastal locations all push premium up.
Construction type significantly affects premium. Frame construction typically rates higher than masonry or fire-resistive construction for fire perils. Site security (fencing, lighting, alarms, on-site supervision) reduces theft and vandalism exposure and often produces meaningful premium credits. Projects in established neighborhoods with active security typically rate more favorably than isolated rural projects.
Location matters substantially in Florida and coastal Georgia. Coastal projects face hurricane premium loads with separate hurricane deductibles. Tier-1 wind zone projects in coastal South Florida face the highest exposure. Project schedule (whether peak construction overlaps with hurricane season) also affects premium and underwriting.
Builders risk offers several premium considerations across project structure, deductibles, security, and timing.
Perimeter fencing, lighting, surveillance cameras, alarms, and on-site supervision all reduce theft and vandalism exposure on active construction sites. Carriers often offer meaningful credits for documented site security programs.
Increasing the all-other-perils deductible from $1,000 to $5,000 or $10,000 reduces premium meaningfully. Hurricane deductibles are typically structured separately as a percentage of completed value.
Soft costs / delay coverage adds premium but is critical for projects where delays carry significant financial consequences. Right-sizing based on actual project exposure produces premium efficiency.
Reporting form builders risk is typically more cost-effective than buying separate single-project policies for contractors with steady project flow. Premium is calculated on actual project values rather than estimated capacity.
Builders risk underwriting attention has increased in Florida coastal markets as hurricane losses have grown. Project timing decisions (starting before hurricane season, scheduling weather-vulnerable phases outside peak season) increasingly affect both underwriting and pricing.
Varies by project structure and contract. For owner-built projects, the owner typically buys. For developer-built projects, the developer typically buys. For GC-built projects, the GC may use reporting form or the owner may buy single-project coverage. Construction contracts and lender requirements typically specify who buys coverage and what limits apply. We confirm responsibility and contract requirements before binding.
Single-project is right for one-off projects, custom builds, or contractors without steady project flow. Reporting form is more efficient for active contractors with multiple ongoing projects. Reporting form requires disciplined reporting practices (new projects reported promptly to avoid coverage gaps); single-project is administratively simpler per project. We help confirm which structure fits.
Yes for most commercial projects and many residential projects. Construction delays from a covered builders risk loss can carry significant financial consequences: additional loan interest, extended general conditions, additional architect/engineer fees, permit and inspection extensions. Soft costs coverage addresses these. Particularly important for tightly-financed projects where delays threaten project viability.
Standard builders risk excludes flood. For projects in flood zones, near bodies of water, or in low-lying areas, NFIP commercial flood or private flood is essential. Wind is typically included but with separate hurricane / named storm deductibles in Florida and coastal Georgia. Understanding the wind deductible structure before construction starts matters for cash flow and project planning.
We write builders risk through multiple appointed carriers covering both single-project and reporting form options. US Assure is a specialist builders risk carrier with strong appetite across residential and commercial projects in Florida and Georgia. The Hartford writes builders risk through standard commercial markets for many project types. For larger commercial projects, coastal Florida projects, or specialty exposures, wholesale brokers (Bass Underwriters, Bridge Specialty, Ryan Specialty) access additional specialty markets.
The right builders risk carrier depends on project type (residential vs commercial), size, location (coastal vs inland), construction type, and any specific endorsements needed. Single-project residential builders risk is widely available through standard markets; larger commercial or coastal projects more often require specialty placements. We route placements based on project specifics rather than defaulting to one carrier.
Carrier appointments and program availability vary by project type, state, construction type, and location. Quotes and placement depend on project details: total completed value, construction type, duration, location, named insured structure, lender interests, and any specific endorsement requirements. Larger commercial projects or coastal Florida placements may be placed through wholesale brokers in excess and surplus (E&S) markets.
Tell us about your project, give us a call, or request a free quote. We'll confirm completed value, coverage form, hurricane deductible structure, and any contract or lender requirements across our builders risk markets.
