Builders Risk Insurance

You’ve closed the deal and signed the contract, with one stipulation. In order to do the work on this project, you will need to carry a builders risk insurance policy. You pick up the phone, call your contractor insurance provider, and are eager to get your builders risk insurance quote.

Here’s what you need to know about what factors go into a quote, and what information you need to get the most accurate one.

Site Location

Where is your project located? Your builders risk cost will vary depending on the site location. High-risk sites that are prone to extreme weather conditions such as floods or fires; natural disasters such as earthquakes or tornados; or even highly populated areas that are at higher risk of vandalism will come at a higher premium than a low-risk location.

Business Size and Status

A small construction business and a large construction business often work on very different scales, and a quote on a major project is going to be higher than a minor remodel. Your business status will also impact your quote; non-profit and charity organizations are typically awarded different rates than for-profit businesses.

The Project Scope

How much work will go into the project during the life of your builders risk policy? The entirety of the work that takes place on a project site will impact the construction insurance quote you receive. Since your quote will depend on the life of your policy, you will need to know when construction is scheduled to start and be completed.

Your Experience and Certification

Are you certified in your field? Have you been in business for five, ten, or twenty years? Contractors who aren’t fully licensed or who have less than two years experience can expect to pay a higher rate on their builders risk policy compared to contractors with a bit more longevity in their craft.

The Total Project Value

The costs for all of the tools, equipment, materials, and labor, plus the estimated value of the land adds up to a total project value. If you aren’t sure what your total project is worth, you won’t be able to get a fair and accurate builders risk insurance quote.

A builders risk policy is important for every project, and often comes as a contractual obligation. Getting an accurate quote for your project takes just a few minutes online or over the phone, then you can be on your way to your next project.


9855 Prospect Avenue - Suite D
Santee, CA 92071
Phone - 888.815.7639
Fax - 619.465.1926
CDI # OD94594