Builders risk — also called course-of-construction insurance — is property coverage for a structure while it's being built. It protects the building, the materials, and often the equipment on site against fire, wind, theft, and vandalism during construction, then ends when the project is finished and a permanent property policy takes over. In 2026 it typically costs roughly 1% to 4% of the total completed value of the project, driven by construction type, location, build length, and — on the coast — named-storm exposure. A standard property policy won't cover an unfinished building, which is exactly the gap builders risk fills.
Builders risk insures the physical project during construction or renovation. A typical policy responds to direct physical loss to:
When the job is complete, accepted, or occupied, builders risk ends and the owner's or occupant's permanent commercial property policy takes over. The two are designed to hand off to each other; the danger is the seam between them, where an early lapse or an assumption that the permanent policy "already started" can leave the structure briefly uninsured.
Three parties have money at risk in any construction project: the owner, the general contractor, and the lender. Any of them can be devastated by a fire or storm mid-build. Who actually buys the builders risk policy is set by the construction contract — sometimes the owner provides it, sometimes the GC carries it and names the owner and lender as insureds.
Two rules keep this from going wrong. First, one clearly assigned party buys the policy — the classic loss is a project where owner and GC each assumed the other had it. Second, the policy names every interested party, so a covered loss pays the people who actually hold the risk. Lenders almost always require builders risk in force before they release construction draws, so on any financed job it's non-negotiable.
Builders risk is usually priced as a percentage of the total completed value of the project — the finished value of the structure, not just the current stage. Premiums commonly fall in a range of roughly 1% to 4% of construction cost for the policy term, though the spread is wide because a few factors move the number hard:
| Factor | Cheaper end | More expensive end |
|---|---|---|
| Construction type | Masonry / non-combustible / steel | Wood frame |
| Location | Inland | Coastal / named-storm zone |
| Build length | Short (3–6 months) | Long / extension-prone |
| Site security | Fenced, monitored, lit | Open, remote, unsecured |
| Project type | Straightforward renovation | Complex ground-up build |
Practically, a $1 million project might run anywhere from the low thousands to tens of thousands for the term, depending on those factors. Frame construction is the single biggest driver — a wood-frame building under construction is a fire and wind exposure, and it's priced like one.
This is the part that separates a Southeast builders risk policy from an inland one. A half-built structure — open walls, exposed framing, no roof yet — is far more vulnerable to storm damage than a finished, buttoned-up building. Carriers know it, and they price and structure coastal wind accordingly.
On GA, FL, SC, and NC coastal projects, expect one or more of these:
Builders risk is property coverage, so several big exposures live in other policies:
Soft cost coverage. Standard builders risk pays the hard costs — the physical structure and materials. But a covered fire or storm that delays completion also runs up soft costs: extra loan interest, additional architect and engineering fees, permit re-issuance, lost rental income. Soft cost coverage reimburses those carrying costs during the delay. On a financed project with a tight schedule, the delay can cost more than the damage itself.
Policy term and extensions. Builders risk is written for the construction period — 3, 6, or 12 months — and if the job runs long, it usually must be extended before it expires. Carriers cap how many extensions they'll grant. Letting the policy lapse mid-build is one of the ugliest gaps in construction, because it often surfaces only when there's already been a loss.
Bettr Coverage is an independent commercial insurance agency serving Georgia and the wider Southeast, with a specialty in construction and infrastructure risk. We place builders risk alongside the rest of a contractor's or developer's program — workers' comp, general liability, commercial auto, umbrella, and the permanent property policy that takes over at completion — and we make sure the coastal wind terms, soft costs, and policy term all line up with the actual project and its lender requirements. Because we shop across multiple carriers, we can match frame-versus-masonry, inland-versus-coastal, and short-versus-long builds to the market that prices them best. And when a project involves public, school, or DOT work that also needs bonding, we coordinate that through our sister brand so it all fits together.
Bettr Coverage places builders risk with the right coastal wind terms and soft-cost protection, then lines it up with your comp, GL, umbrella, and permanent property policy — one agency, one relationship, the whole project covered from groundbreaking to occupancy.
Get a free project coverage reviewProperty coverage for a structure while it's under construction or renovation — the building, materials, and often on-site equipment against fire, wind, theft, and vandalism. It ends when the project is finished and a permanent property policy takes over.
The construction contract decides. Sometimes the owner provides it, sometimes the GC carries it and names the owner and lender. The rule is one assigned party buys it and the policy names every interested party. Lenders usually require it before releasing financing.
Commonly around 1%–4% of the total completed value for the term, driven by construction type (frame costs most), location, build length, and coastal wind exposure. A $1M project might run from low thousands to tens of thousands.
Sometimes — but coastal policies often apply a separate percentage-based named-storm deductible (commonly 2%–5% of value) or exclude wind entirely, requiring a separate wind policy. Confirm the wind terms in writing before the build starts.
Worker injuries (comp) and third-party liability (GL) — it's property only. It typically excludes faulty workmanship itself, normal wear, and often flood and earthquake, which must be added separately.
Written for the construction period — 3, 6, or 12 months — and usually must be extended before it expires if the job runs long. Coverage ends at completion, acceptance, or occupancy.
For general information only. Not a quote or contract of insurance. Cost ranges and deductible figures are illustrative, not filed rates, and vary by construction type, location, project value, build length, carrier, and underwriting. Coverage terms, exclusions, sub-limits, and coastal wind availability differ by policy and carrier — confirm specifics with a licensed agent. Coverage subject to policy terms and carrier appetite.