Builders Risk in Dallas, TX

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Builders Risk Quote Form

Construction projects are complex and have many moving parts that have the potential to go wrong. If you or your company are invested financially in new construction or renovation projects, you could be left with costly out-of-pocket expenses if the project doesn’t go as planned. Builder’s risk insurance, also known as course of construction insurance, can protect you from these losses. 

We’re here to help. Contact Texas Insurance Options in Dallas, Texas, to learn more about our builder’s risk coverage today. 

What Is Builders Risk Insurance? 

Builder’s risk is a specialized type of property insurance coverage that protects buildings and structures from damage while they are under construction. This insurance policy can provide peace of mind for anyone with a financial stake in the construction project (e.g., property owners, general contractors, building owners). 

What Does Builder’s Risk Insurance Cover? 

In addition to buildings and structures, your builder’s risk insurance policy may cover your equipment, building materials and supplies from various perils. While individual policies may vary, here are some of the common causes of loss builder’s risk insurance covers: 

• Vandalism and theft
• Fire, lightning and hail
• Explosions
• Acts of God (e.g., hurricanes) 

Builder’s risk insurance can also cover soft costs, which are expenses that aren’t directly tied to property damage at your construction site but arise from construction delays caused by certain types of property damage, such as: 

• Real estate payments and taxes
• Additional interest on project loans
• Architectural, engineering and consultant fees
• Inspection and permit expenses
• Accounting, advertising, marketing and project management services
• Post-construction legal fees and insurance premiums 

Additionally, if needed, endorsements for business interruption or loss of rent may be available and provide protection for lost income or rent arising from project delays due to a covered loss.  

How Does Builders Risk Insurance Work? 

Builder’s risk insurance provides coverage for a set term. When purchasing a builder’s risk policy, check the exact date coverage starts and ends. Generally, your policy will begin the day contracts are signed for a construction project and end with the project’s completion. But individual policies may vary, and your policy may contain specific triggers that signify the beginning or end of your coverage. 

Speak to your insurance agent to ensure you understand when your coverage begins and ends.  

Do I Need Builders Risk Insurance? 

In Texas, project owners or contractors are required to have a builder’s risk insurance policy to help protect property from damage during construction. Although not strictly required, you may add other parties with a financial interest in your construction project to your builder’s risk policy, such as the following:  

• Commercial property owners
• Subcontractors
• Architects
• Lenders
• General contractors 

How Much Does Builders Risk Insurance Cost? 

The cost of your builder’s risk policy will vary with numerous factors. When determining the cost of your premiums, your insurance company may consider the following: 

• Coverage limits and amounts
• Construction materials
• Type of project 

How Do I Buy Builders Risk Insurance? 

Finding the right insurance policy for your business takes time and care. That’s why we’re here. Contact Texas Insurance Options today for more information on the builder’s risk insurance coverage we offer and to speak to a local agent.