Georgia Builders Risk Insurance
Written by; Craig Barbee, CEO with Barbee Jackson Insurance. He and his team have spent over 20 years in the insurance industry and have a deep understanding of commercial and residential builders risk insurance. They work with multiple insurance companies to find their clients the best coverage for their project.
Protect your Course of Construction Project with Barbee Jackson Insurance
Have a new build or a renovation project that needs insurance? At Barbee Jackson Insurance we are here to help. We have insured small residential projects to large multi year commercial projects here in Georgia.
What separates us from the competition is the vast number of insurance companies that we work with to find our clients the right coverage options at the most competitive price. Your project matters to us and we will work with you from the foundation to the final completion. Call today to get started (850) 389-2001 (Spanish speaking representatives are available)
“Rose at Barbee Jackson Insurance was very knowledgeable and patient while reviewing my options for a Builders Risk Policy. I highly recommend Barbee Jackson Insurance for your Insurance coverage policies.” ⭐⭐⭐⭐⭐ Danny Perez
Why do you Need Builders Risk Insurance?
The most common answer is the lender is requiring a policy in order to start the draws. And yes that is correct, but builders risk insurance is more than just lender required. It is financial protection against loss for the unforeseen.
Georgia has some of the most severe thunderstorms and hail in the country. Metro Atlanta counties like Gwinnett, Fulton, Cobb and DeKalb are the hardest hitting counties when it comes to severe weather.
Georgia also is amongst the top 10 states for tornado frequency, which has caused at least $75 million in residential losses.
Like Florida, Georgia gets the remnants of hurricanes that hit the Gulf Coast. In September of 2024 Hurricane Helene made landfall in Florida and impacted Georgia directly with heavy flooding and severe winds.What caused the most claims was not the winds, but severe flooding that surrounded the area.
And the one thing that most people forget is theft of building materials. In this day of age building material fluctuates constantly and without a builders risk policy you could be out thousands of dollars in material theft.
How much does Builder's Risk Insurance Cost?
Rates will fluctuate based on location, total value of project and the policy period. If the lender is requiring a policy then it has to be at least for one year. Policy terms limits can start as low as 3 months (mostly used for renovation projects) and up to 18 months for residential homes. Insurance companies have extended the policies in recent years do to material demands.
In average you can expect to pay $0.38 per $100 in cost.
For example you have a construction project valued at $500,000 including soft costs. We would calculate by dividing the $500,000 by $100 giving us 5,000. Then we would multiply that by $0.38 given us a policy for $1,900 per year.
The insurance companies do give us a floor amount that they will not go under on premium which is $400 per year.
Which Insurance Company is the Best?
Every project is different, so that’s why we have multiple insurance companies and compare coverage options, deductibles and exclusions (hidden fine print). Our agents will work with you to find the best option for your project.
Real life example was back in 2024 where the project slab was poured and the remaining build time was less than 9 months. The couple approached a nationally known insurer and was shocked to find out that if the project was completed before the insurance term expired there would be no refund, because it was a fully earned project. They called our agency and we were able to write the policy and were able to issue a refund on the unused portion of the premiums.
⭐⭐⭐⭐⭐David Altimont “We bought a Builder's Risk Insurance policy for our new home under construction. Service and pricing were both "best in class." Rose Williams was very easy to work with - responsive, good explanations for my questions and quick to refund my unused premium when our home was finished early.”
Questions and Answers
I’m getting turned down for insurance because they say the project is too far along.
This is one of the most common statements that we get from clients. Insurance companies will not insure a project that is beyond 30% complete. That is a hard underwriting rule. You must secure the policy prior to the project start or after the pad is poured.
We have had people ask for us to just write the policy and the insurance company will never know. First off the insurance companies we work with are our partners and we insure based on their underwriting guidelines. Secondly, if an agency writes you a policy and ignores the 30% rule you could be denied a claim when the insurance company does it’s claim analysis.
What is the most common cause of loss?
In Georgia it would be flood. And that brings up a great point, not all policies have flood as a covered loss. Certain insurance companies will offer flood as an endorsement to the policy, while others won’t give you an option to buy flood. In the case of the insurance company will not offer flood, we would have to write you a policy through the National Flood Insurance Program (NFIP) as a standalone policy.
Can we insure mobile homes?
No, we can not insure mobile homes for new construction, because it is already built, or renovation.
Ready to get started? We are ready to help! Call (850) 389-2001 or fill out the form below to have one of our agents contact you.