How much does Builders Risk Insurance cost? Average premiums by business size, industry, and state — plus the key factors that drive your rate up or down.
Builders risk insurance (also called construction insurance) covers buildings and structures under construction from damage due to fire, vandalism, weather, and other covered perils during the construction period — protecting contractors, property owners, and lenders.
Builders risk insurance covers property that is under construction or renovation — protecting against loss or damage from fire, wind, theft, vandalism, and other perils during the construction period. It covers the structure being built plus on-site materials, supplies, and temporary structures. Required by lenders for construction loans. Owners, general contractors, and subcontractors all have insurable interests. Premiums typically run 1–4% of the project's total hard cost annually, with a policy term matching the construction schedule.
| Business Size | Annual Revenue | Typical Premium | Notes |
|---|---|---|---|
| Small Residential Project ($100K–$500K) | N/A | $1,500–$6,000 per project | Custom home or major renovation. Standard wood frame. 12-month term typical. |
| Mid-Size Commercial ($500K–$5M) | N/A | $5,000–$50,000 per project | Retail, office, mixed-use construction. Construction type and location drive rate. |
| Large Commercial ($5M–$25M) | N/A | $40,000–$200,000 per project | Major commercial or multi-family. Often requires builders risk broker with specialist markets. |
| Major Project ($25M+) | N/A | Highly variable; $150,000–$1M+ per project | Infrastructure, high-rise, complex renovation. Manuscript policy. London market often required. |