Written by: Craig Barbee CEO of Barbee Jackson Insurance. Craig and his team have worked with contractors and builders since 2009 secure builders risk insurance.

Helping People Protect their Investment

If you are about to start a new build or renovation project Barbee Jackson Insurance is here to help. We work with the leading insurance companies that specialize in Builders Risk Insurance. One phone call gets you up to four quotes on your project, saving you time and money. Call today to get started (850) 389-2001

How Much Does Builders Risk Insurance Cost?

Costs are dependent on how much the dwelling or renovation is insured for plus the duration of the policy. Builders risk insurance is run as low as $400 for the year for smaller projects.

When calculating how much the insurance will cost you take the insured amount divided by $100 and multiplied by the insurance cost. Cost can run as low as $0.38 and upwards of $3.00 for higher risk zones. For example - a $500,000 could run as low as $1,900 ($500,000/100 then multiplied by the insurance cost of $0.38 equals $1,900.

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.”

Builders Risk Insurance is more than you Think

Most people purchase builders risk insurance because it is lender required not knowing why it is a valuable coverage designed specifically for new construction and renovations. Most people understand how and why home insurance is a necessary coverage to protect their home against natural disasters, fire and theft. 

Builders Risk Insurance works in the same way, but also includes theft of building materials and other hard costs that are not covered in an ordinary home insurance policy. Policies can be written for 3 months and up to 18 months, but most lenders will require a standard 12 month policy. There is an option to renew if the construction experiences delays or the timeframe needs to be longer than 18 months.

Who buys the policy…General Contractor (GC) or the owner? Some GC will include the builders risk policy in their bid, but it is highly recommended that the owner is the policyholder and buyer. There have been several instances where the GC and owner have separated on the project over differences and if the GC was the owner and named insured then the policy would remain with the GC, forcing the owner to try to purchase a new policy. Secondly, if there is a claim the owner should be the one that gets the check to replace or repair the damaged property.

Claims Happen

North Carolina does get its fair share of natural disasters and without the right coverage your property may not be properly protected. In September of 2024 Hurricane Helene made landfall in Florida then proceeded to move north to western North Carolina as a tropical storm causing devastating wind and flood damage. It was the costliest natural disaster in modern history for North Carolina causing an estimated $59.6 billion in damages.

Coverage Options

Dwelling - The base coverage for any new build. It is important to include any hard costs along with the construction costs when determining how much to insure the project. If it is a renovation you can include or exclude the dwelling coverage and opt just to insurance the renovation costs. It is recommended that you insure the dwelling and renovation cost.
Theft of Building Materials - In recent years there has been more theft of building material due to the rapid rise in cost for building materials. The most common theft loss is the HVAC unit. Insurance companies have required that the HVAC unit be installed upon delivery of the unit.
Wind - Wind can be included or excluded on the policy. North Carolina has not had a major hurricane for nearly 30 years, but the state still gets tropical storm force winds as pointed out in the 2024 Hurricane Helene.
Flood - Flood is an option that can be purchased on the policy (certain insurance companies have this as an option) or through the National Flood Insurance Program (NFIP).
Soft Costs - Soft costs are an added coverage that some builders buy to round out the coverage. They include such costs as architectural and engineering fees, permit fees, real estate taxes, marketing costs, additional insurance premiums and lost rental income or lost sale.

“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

Frequently Asked Questions

Can you insure a property that is nearing completion?
Normally no, insurance companies have a 30% rule that says if more than 30% of the house is complete then they won’t provide coverage. We recommend buying the policy prior to the foundation being poured or just after the foundation is complete.
Is liability included?
No, that is a separate policy that can be purchased. It is referred to as a Premise Liability Policy. The cost runs about $475 per year for $1 million in liability coverage. 
Can I cancel my policy anytime?
If your project is completed prior to the end of the policy term, some insurance companies will refund the unused portion. Not all insurance companies offer this as an option.

We are ready to help you with your project - call (850) 389-2001 or fill out the form below to have an agent call you.