2026 Expert Guide to Tennessee Builders Risk Insurance

Written by: Craig Barbee, CEO of Barbee Jackson Insurance. Craig and his contractor team write Builders Risk Insurance throughout the United States with 20+ years of experience. They are experts in course of construction projects and work with all the leading insurance companies that specialize in Builders Risk Insurance.

Are you considering building or remodeling a home or commercial property in Tennessee? If so you will need to cover the structure during the building or remodeling process and that’s where Builders Risk Insurance comes in to help provide protection against a covered loss.

Builders Risk Insurance covers the structure while in the course of construction or remodeling against losses such as tornadoes, fire, earthquakes, flood and vandalism. You can think of it as a homeowners insurance policy or commercial building policy without the contents and liability coverage, but with a lot more additions for added protection.

As one the country's largest writers of Builders Risk Insurance Barbee Jackson Insurance will shop all the leading insurance carriers to find you the right coverage at the best price. Depending on the size of the project, quotes can be done in less than 10 minutes. Larger commercial projects will require underwriting support, but can usually be turned around in less than 48 hours. Call to get started today (850) 389-2001

What Information do we need to provide a quote?

1. Project address
2. Mailing address
3. Commercial or Residential
4. Remodel or New Construction
5. Square footage
6. Building cost including soft costs
7. Type of construction (i.e. frame, metal, joint masonry etc.)
8. Number of stories 

“Courtney is awesome! She answered and addressed all my concerns! The process was smooth and easy!” ⭐⭐⭐⭐⭐ Melissa Oschner

Insurance Coverage - 5 Rating Factors that Influence Builders Risk Insurance

Location

Location is a larger determining factor of the cost of a builders risk policy. Coastal states pay a significantly higher premium because of the potential loss due to wind. Similarly, states that have a significantly higher chance of loss from wildfires will also pay a higher premium.

Inland states like Tennessee can expect to pay a much lower premium because the chance of loss is lower - but there are areas in Tennessee that are more prone to tornadoes and floods that will drive the cost of insurance higher in premium. 

Project Type

The larger the construction project the higher the premiums will be on the insurance. Rates are determined by taking the total construction price divided by one hundred and multiplied by the rate per hundred. Every insurance company has their own rate per hundred and that’s where we help by shopping all the leading insurance carriers to save you time and money.
Example: a $300,000 project can be insured for $1,200 (300,000/100 * 0.40)

Construction Type

Most residential homes are built using frame construction and have a larger chance of loss due to fire and windstorm. While most commercial buildings are built using concrete block or other fire resistant materials and expect to pay a lower premium per hundred.

Optional Coverage

All builders' risk policies can be custom designed to meet your needs. We can add optional coverages such as windstorm, flood and earthquake. Other options include,

• Business income
• Materials in transit to the construction site
• Materials in temporary storage

Duration of the Policy

Policies can have policy terms starting at 3 months and up to 18 months. Larger construction projects can have longer policy periods or a renewal can be offered. It is important to remember that if a lender is involved then the policy period must be at least 12 months.

Commercial General Liability Insurance cannot be written on the policy. A separate Premise Liability can be written to handle the liability to others. The cost of premise liability runs about $485 per year and is highly recommended for added protection against a slip-and-fall. This does not include coverage for workers that get injured on the job site.

Tennessee Builders Risk Rates

Policies start as low as $400 per year and increase based on the 5 rating factors that were discussed above. We have seen rates as low as $0.40 per hundred of the total value of the project. One of our agents will discuss with you all the options and get you the right coverage at the best price.

Frequently asked Questions

When Should Coverage Start?

Coverage on the structure needs to be in place before the start of the project. Many lending institutions will require coverage to be in place prior to the first draw. If the project has already started then coverage can still be obtained as long as the project is less than 30% completed. We suggest that the policy be put into place before the project starts or after the slab is poured.

Can the Policy Limits be Adjusted Mid-Term?

In today’s world it is nearly impossible to anticipate material costs. The supply chain is having crippling effects on all building materials, so building prices are constantly moving up. The insurance carriers realize this problem and coverage can be adjusted up to match the new building costs.

When to Cancel the Policy?

Builders Risks Insurance is only meant to be in effect during the building process. After the project is complete a permanent policy must be put into effect.

Can the Policy be Renewed?

Policies can be renewed only at the discretion of the insurance company. Some insurance carriers only give you one shot to complete the project and others will allow you to renew until the project is complete.

Coverage Period?

Builders Risk can be written for coverage periods up to 18 months, but many insurance companies consider this type a full earned policy (no refunds even if the project is completed early). Our agents have access to companies that will offer a refund, so it is best to discuss with an insurance professional.

Who can own the Policy?

The policy can be written in the name of the Property Owner or the General Contractor(GC). We highly recommend that the policy be written in the name of the Property Owner. Two premiere reasons:

1. If there is a claim, then the Property Owner will be the one that the check for the damages will be written out to, not the GC. We feel that it is in the best interest for the Property Owner to handle the cash for repairs.
2. In many cases, we have seen a disagreement between the Property Owner and the General Contractor. The result is the GC leaves the project or gets fired. As we stated before it can be extremely difficult to buy a replacement policy if the project is over 30% complete.

“Courtney and the team at Barbee Jackson Insurance have been extremely helpful throughout the process of getting coverage set up for my business. They’ve been very responsive, patient with questions, and great at explaining different options and helping guide decisions along the way.

As a new business owner, having an insurance team that is knowledgeable, accessible, and easy to work with makes a huge difference. I highly recommend them to anyone looking for commercial insurance support.” ⭐⭐⭐⭐⭐ James Rudy

Why Barbee Jackson Insurance

Barbee Jackson Insurance is one of the country’s leading insurance agencies specializing in Commercial and Residential Builders Risk Insurance. Our Agents are trained to handle all types of projects ranging from residential homes to large multi million dollar commercial projects. Call today to get started (850) 389-2001