2026 Guide to Everything Texas Builders Risk Insurance

Written by: Craig Barbee, CEO at Barbee Jackson Insurance. Craig works with the contractor team that is in charge of writing Builders Risk Insurance throughout the United States with 20+ years of experience. He has also written extensively on Builders Risk exclusions and what people misunderstand about Builders Risk Insurance.

Texas Builders Risk Insurance is more than just a policy. It is an assurance that in case something does happen you will be made financially whole again. 

Where certain things are less likely to happen in other states - Here are Texas’s leading loss categories.

#4 Wind and Hail - Texas has a vast coastal exposure with the gulf coast hurricanes (maybe not as frequent as Florida, but still ranks high)

#3 Freeze Damage - Texas has extreme weather such as freezing. Some insurance companies will exclude or have a sublimit for frozen or burst pipes during construction.

#2 Fire Loss - Due to the dryer climate fire loss is a leading factor. Many jobsites are required to implement a Hot Work Permit Program in order to build.

#1 Theft - Texas has among the highest theft loss for equipment and building materials such as copper, lumber, HVAC units, appliances and electrical wiring.

All these factors increase the chance of loss on the construction project and certain policies have exclusions that will not cover these types of losses. It is important to work with an insurance agency that reads the fine print, gets you the right coverage at the best price. Don’t work with an agency that doesn’t understand the exclusions and coverage options.

What is Builders' Risk?

Builders Risk Insurance is a policy designed for course of construction. That can be for a new build or renovation. The policy will have some of the same coverage options as a standard home or commercial policy and some coverages that are excluded. The key is to find the coverages you need for your project - That’s where we step in!

How Much does a Policy Cost?

Rates start as low as $400 per year. There are many factors that drive rates, but most insurance companies will not go below $400. Rates are figured out per thousand. So if you have a $400,000 project the insurance price would be about $1,600 (e.g. 400,000/100 * 0.4). Rates per hundred vary.

Barbee Jackson Insurance 

Barbee Jackson Insurance is a leading writer of Builders Risk Insurance from Florida to California. As an independent insurance agent we work with dozens of insurance companies that specialize in Builders Risk Insurance. Quotes can be done usually in under 10 minutes. Call us today to get started (850) 389-2001 

Edison Sulkollari ⭐⭐⭐⭐⭐”Great experience working with Rose. She helped me quickly find the right insurance for my shop and made the whole process very smooth and easy. She was professional, responsive, and very helpful throughout. Highly recommended”

Key Benefits of Builders Risk Insurance

• Coverage for the building - new and/or existing
• Protection for theft of building material
• Soft costs like additional permits and loan interest
• Debris removal after a covered loss
• Additional endorsement options such as off-site material, earthquake, and windstorm

Watch Out for What’s Not Covered

• Contents - usually not a concern unless it is a renovation project
• Liability - No General Liability coverage is available on a policy. A standalone Premise liability policy for a homeowner is available for about $485 per year in $1 million of coverage 
• Flood is available with some insurance companies in certain areas. Others may want you to get a policy through the National Flood Insurance Program(NFIP)
• Other exclusions will vary by insurance company and our agents will be happy to discuss

Frequently asked Questions

I’m the General Contractor on the site and I leave some of my equipment overnight. Can I get coverage on the equipment?

Yes, we have coverage optional on an inland equipment policy. Some small items can be a blanket coverage and others will have to be scheduled. The insurance company may also require some protection being added for larger items or in high risk areas.

Who buys the policy? General Contractor(GC) or the owner of the project?

We recommend the owner of the project be the policyowner. This is in case the GC disappears or is fired from the project.

What are the policy periods?

You can get a policy from 3 months up to 18 months. If the project is expected to take longer the insurance company may extend the policy period or offer you a renewal.

Are policies refundable if the construction is completed earlier than planned?
That depends on the insurance company. Some companies only offer fully earned, meaning no refunds. Others will offer a portion of the policy to be refunded.

When is the best time to purchase the policy?
We recommend you purchase it before the project begins or after the slab is poured. Don’t wait too long to buy - insurance companies will not insure you after the project is 30% complete.

Our Expert Agents are standing by to answer all your questions (850) 389-2001

“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