A structure under construction needs its own insurance, separate from a finished-building policy — priced as a percentage of the completed project’s value.
How it works
Multiplying the total project value by the builder’s risk rate gives the estimated premium for the construction period.
What this does not include
This does not include how rates vary by construction type (wood frame vs. concrete/steel), project duration, location-specific weather and theft risk, and coverage extensions like soft costs or delayed opening — all of which shift the applicable rate meaningfully.
How to use this calculator
- Enter the total project value and the applicable builder’s risk rate.
Frequently asked questions
Who typically buys builder’s risk insurance?
Either the property owner, the general contractor, or both, depending on the construction contract’s requirements — it’s common practice to name all key parties as insureds.
Does builder’s risk insurance cover the finished building afterward?
No — it’s specifically for the construction period; a standard homeowners or commercial property policy takes over once construction is complete.
What’s typically excluded from builder’s risk coverage?
Common exclusions include faulty workmanship itself (though resulting damage may be covered), employee theft, and normal wear — the specifics vary significantly by policy.
