How this estimate works
Builder's risk insurance, also called course of construction insurance, covers a building while it is under construction or renovation, including materials on site, against fire, wind, theft, vandalism and other covered perils. Insureon reports that policy costs are typically between 1% and 4% of the total completed value of the structure, which includes materials and labor but not land. The calculator multiplies the value you enter by the low end, the middle or the high end of that range.
For smaller jobs, Insureon's small business customers paid a median of $105 a month, about $1,259 a year, with most policies between $350 and $7,000 a year.
What drives the price
- Project value and length, including whether it is new construction or a renovation
- Construction type and classification, such as frame or joisted masonry, and the size of the structure
- Location: hurricane, flood, wildfire or earthquake exposure and local theft risk
- Open perils versus named perils coverage, deductibles and endorsements such as soft costs or debris removal
Limitations
The 1% to 4% range is a general guide, and insurers set minimum premiums and terms for each project. Builder's risk does not cover injuries to workers, liability to others or tools moved between job sites; those need workers' compensation, general liability and inland marine coverage.
This is an indicative estimate, not an offer of insurance. Policies are issued by licensed insurers and placed through licensed producers in your state. Compare real offers by requesting a quote.