Builders Risk Insurance Texas (2024)

Builders Risk Insurance in Texas

You now know the history and importance of builder’s risk insurance; the question is, who needs a builder’s insurance policy? When building construction occurs as either new construction or renovation of an existing structure, most prudent contractors assume that the job requires a builder’s risk policy. This is not always the case. It depends on the project details, from the insurable interest of the various parties to the construction contract for the new project.

Builders Risk Insurance, or Course of Construction Insurance, is a specialized property insurance designed to safeguard construction projects during their development phases. This policy typically covers the structure itself, materials on-site, and sometimes even construction equipment and tools.

What is Builders Risk Insurance?

You now know the history and importance of builder’s risk insurance; the question is, who needs a builder’s insurance policy? When building construction occurs as either new construction or renovation of an existing structure, most prudent contractors assume that the job requires a builder’s risk policy. This is not always the case. It depends on the project details, from the insurable interest of the various parties to the construction contract for the new project.

• Property Owners: Builders Risk Insurance can protect your investment if you own a property undergoing construction or renovation. It ensures you're financially protected if something goes wrong during construction.

• Contractors: General contractors, builders, and subcontractors can also benefit from Builders Risk Insurance. It provides coverage for their work on the project, protecting them from liability and potential financial losses due to unexpected events.
• Lenders and Investors: Many lenders and investors require Builders Risk Insurance as a condition for financing a construction project. It gives them peace of mind knowing that their financial interests are protected.

What Does Builders Risk Insurance Cover?

Builders Risk Insurance typically covers the following:

What Types of Damage and Loss Does Builder’s Risk Insurance Cover?

A builder’s risk policy will provide coverage for damage done to the insured structure from a wide variety of events. Most policies will cover damage from the following events:

• Loss from fire
• Loss from lightning
• Loss from hail
• Loss from theft
• Loss from vandalism

What Isn't Covered?

Builders Risk Insurance typically does not cover the following:

How to Get Builders Risk Insurance

Builders Risk Insurance typically covers the following:

• Assess Your Needs: Determine the coverage you need based on the project's value, location, and potential risks.

• Choose a Reputable Insurer: Work with an experienced insurance provider specializing in Builders Risk Insurance.

• Review Policy Details: Carefully review the policy terms, coverage limits, deductibles, and exclusions.

• Secure the Policy: Once you're satisfied with the terms, secure the policy before construction begins.