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What Is Builders Risk Insurance?

Builders risk insurance is property coverage designed for buildings and other insured property while construction or renovation is taking place.  A builders risk policy can generally cover physical loss or damage to covered property caused by a covered cause of loss, subject to the policy's terms, conditions, exclusions, deductibles, and limits.  Depending on the policy and project, covered property may include:

• The building or structure under construction
• Building materials and supplies
• Fixtures and components intended to become part of the completed building
• Certain temporary structures and construction-related property
• Materials temporarily stored away from the construction site, when covered by the policy
• Certain equipment or property associated with the construction project
• Debris removal following a covered loss
• Other project-specific property and coverage extensions

 

Every builders risk policy is different. Coverage should be reviewed carefully to determine whether the policy addresses the specific property, location, construction method, project value, and risks associated with your project.

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What Does Builders Risk Insurance Cover in Texas?

The coverage available depends on the insurance company and policy selected. Depending on the project, builders risk insurance may provide protection for covered losses involving:

Fire

A fire can cause extensive damage to a partially completed structure and the materials inside it. Builders risk coverage may help pay for covered physical damage to insured property following a covered fire loss.

Wind and Hail

Texas construction projects can be exposed to severe thunderstorms, high winds, and hail. Wind and hail coverage should be specifically reviewed when selecting a policy, particularly for projects in areas with significant weather exposure.

Theft and Vandalism

Construction sites can contain valuable building materials, appliances, fixtures, tools, and equipment. Depending on the policy, coverage may be available for covered theft or vandalism losses.

Water Damage

Water-related losses can cause substantial damage during construction. Depending on the circumstances and policy provisions, coverage may be available for certain covered water losses.

Construction Materials

Builders risk insurance can protect covered materials and supplies associated with the project, subject to policy terms and applicable limitations.

Debris Removal

Following a covered loss, the cost of removing damaged materials and debris can add significantly to the cost of rebuilding. Appropriate debris-removal coverage may be available as part of a builders risk policy.

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What Builders Risk Insurance Does Not Replace

Builders risk insurance and liability insurance serve different purposes.

Builders risk insurance is primarily intended to protect covered property associated with the construction project from covered physical loss or damage.

General liability insurance is designed to address certain covered third-party claims involving bodily injury, property damage, and other liabilities arising from business operations.

A construction project may need both.

Builders risk insurance also should not automatically be assumed to cover every cost associated with a construction delay. Depending on the project and policy, specialized coverage may be available for certain soft costs, delay-related expenses, or other financial consequences of a covered loss.

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Who Needs Builders Risk Insurance?

Builders risk insurance may be appropriate for many types of construction and renovation projects.  We can help you explore coverage for:

• New residential construction
• Custom home construction
• Spec homes
• Commercial construction
• Apartment and multifamily projects
• Major remodeling projects
• Property additions
• Structural renovations
• Real estate development projects
• Investment properties under construction
• House-flipping and renovation projects
• Projects owned by individuals, investors, developers, or businesses
• Construction projects where a lender or contract requires builders risk coverage

 

The party responsible for obtaining the policy depends on the construction contract and circumstances of the project. The owner, general contractor, developer, or another party may be responsible for arranging the insurance.

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Builders Risk Insurance For Contractors and Developers

Contractors and developers have significant financial exposure when a project is under construction.  A serious loss can affect the construction schedule, project budget, financing arrangements, subcontractors, suppliers, and eventual completion of the property.  The right builders risk policy can help protect the covered property investment while construction is underway.

If you're a contractor or developer, we can help you review the insurance requirements associated with your project and determine what information is needed to obtain a quote.

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Builders Risk Insurance for Property Owners and Investors

Property owners and real estate investors also need to consider what happens to their investment before construction is complete.  A standard homeowners or commercial property policy may not provide the type of protection needed for a property undergoing significant construction or renovation.

If you're building, remodeling, or substantially improving an investment property, talk with us before construction begins so we can help you evaluate your insurance options.

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How Much Builders Risk Insurance Do I Need?

The appropriate limit depends on the project and the property being insured.  When determining the amount of insurance, you may need to consider:

• Construction hard costs
• Building materials
• Labor
• Fixtures and components
• Construction plans and specifications
• Existing property, when applicable
• Project scope
• Expected completion date
• Additional covered project expenses
• Contractual insurance requirements
• Lender requirements

 

The goal is to avoid both inadequate coverage and unnecessary insurance costs.  Your policy should be reviewed as the project develops, particularly when the scope or value of construction changes.

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Why Choose Us For Builders Risk Insurance?

At Sams One Stop / Sams Insurance Group, we understand that construction insurance is not one-size-fits-all.  A residential remodel, new custom home, commercial development, and large construction project can have very different insurance needs.  We take the time to understand your project and help you evaluate available coverage options.

We serve clients in San Antonio and throughout Texas, including property owners, contractors, builders, developers, and real estate investors.  Our goal is simple: help you obtain insurance that makes sense for your project, your budget, and your contractual requirements.

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Get A Builders Risk Insurance Quote In Texas

Starting a construction project?

Don't wait until a loss occurs to find out what your insurance policy does—or does not—cover.  Contact Sams One Stop / Sams Insurance Group to discuss your project and explore builders risk insurance options in San Antonio and throughout Texas.

Protect Your Project Before Construction Begins

Whether you're building a home, remodeling an investment property, or managing a commercial construction project, we're here to help you evaluate your builders risk insurance needs.

Feel free to reach out to us for a builders risk insurance quote.

Call us: (210) 788-1034

Email us: aaron@samsonestop.com

4063 East Houston St
San Antonio, TX 78220