A Straightforward Guide to Pricing

Builders Risk Insurance is a custom policy designed to meet the specific needs of each project. When determining price we look at the project cost, location and duration just to name a few. Below we will breakdown what drives the price and how to get an accurate insurance premium for your build. Our agents are here to help and if you are looking for an exact price please call for a free, no obligation quote (850) 389-2001 (Spanish speaking associates available) 

💡Pro Tip - You will see a lot of content on the internet that says policies cost between 1% and 4% of your project value. This may be true for large scale commercial projects where material theft and soft cost have an overwhelming factor on price. On residential homes the price will be lower than 1% of the project build.

Factors that Determine Price

Every project is unique - here are the number of factors that determine price:

☑️Total Project Value - The total completed value of your project
☑️New Construction vs. Renovation - New construction is cheaper to insure than renovation due to the newer construction methods. Renovations typically are older buildings and have a much higher chance of loss.
☑️Location - Coastal area and flood zones will have a higher rate than non-coastal areas. But that is not the only factor on location. Insurance companies will also look at fire zones and areas with a higher chance of material theft.
☑️Construction Types - Frame is the most common building type and is the standard rate. Building built using joisted masonry will get a lower rate due to the lesser chance of fire loss.
☑️Project Duration - If a lender requires you have a builders risk policy then the duration of the policy must be at least 12-months. We have programs starting at 3-months (typically used for renovation projects) up to 18-months. Some offer renewal based on the size of the project.
☑️Deductibles - Deductibles start at $500, but we suggest starting at $1,500.
☑️Optional Coverage - Windstorm, flood, earthquake, and soft cost endorsements each add to the base premium, but they also close real gaps a standard policy leaves open.
☑️BONUS - Not all insurance companies charge the same rate for insurance. Many will compete against each other to earn your business. That’s why using an independent insurance agency that can compare rates will save you time and money.

A Quick Example

You are building a $500,000 home in a standard city where a fire department is within 5 miles and a fire hydrant is located within 1,000 feet. If you read the Pro Tip others would say that the cost on the low end would be $5,000 per year. That is simply not true - the cost would be less than 1%.What we have found is a $500,000 house can be insured for $1,900 per year. We determined this by taking the build cost of $500,000 dividing that by $100 and multiplying by the rating factor of .38 ((500,000/100) * .38 = $1,900)

Not Sure Which Coverage You Need?
☑️ Building a new home? See our New Construction coverage
☑️ Renovating or remodeling? See our Renovation coverage
☑️ Working on a commercial project? See our Commercial coverage

Get a Custom Quote

Our agents are happy to give you a custom quote that is ready to bind. Get your exact number today — call (850) 389-2001 or fill out the quote form below and one of our agents will call you with real pricing, not a guess.

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.”