Builder's Insurance Estimator

Estimate Builder's Risk and General Liability insurance costs for your construction project. See coverage minimums and what to ask your agent.

Builder's Risk insurance is a specialized property policy that covers a structure during construction. Unlike a standard homeowner's policy — which excludes buildings under construction — Builder's Risk covers the building, materials on site, and materials in transit against fire, windstorm, hail, lightning, theft, and vandalism. Lenders universally require it before funding a construction loan. The policy term matches your build schedule (typically 6–12 months) and can usually be extended if construction runs long. Coverage should equal 100% of the completed value of the structure. General Liability insurance, the other essential policy, protects you if someone is injured on your job site or if your project damages a neighbor's property. Together, these two policies form the insurance foundation every owner-builder needs before breaking ground.

Frequently Asked Questions

Do I need Builder's Risk insurance as an owner-builder?

Yes. Builder's Risk insurance protects the structure under construction from fire, storm, theft, and vandalism. Most construction lenders require a Builder's Risk policy naming them as loss payee before they will close on a construction loan. Even if you're self-funding, Builder's Risk protects your investment during the most vulnerable phase of ownership.

How much does Builder's Risk insurance cost?

Builder's Risk typically costs 1–4% of the total construction value, annualized. A $350,000 build might cost $3,500–$7,000 for a 12-month policy. Rates vary by state, structure type, and whether it's new construction or renovation. High-risk states like Florida cost more due to hurricane exposure.

Does my homeowner's insurance cover construction?

No. Standard homeowner's policies explicitly exclude structures under construction, major renovations, and vacant properties. You need a dedicated Builder's Risk policy for the construction period. Once you receive a Certificate of Occupancy, you switch to a standard homeowner's policy.

What's the difference between Builder's Risk and General Liability?

Builder's Risk covers damage to the structure itself (fire, storm, theft). General Liability covers injury to third parties and damage to neighboring property. If a visitor trips on your job site, General Liability responds. If a windstorm damages your half-built house, Builder's Risk responds. Most owner-builders need both.

Do I need Workers' Compensation as an owner-builder?

If you hire subcontractors (1099), they carry their own Workers' Comp and you generally don't need your own policy. If you hire any W-2 employees (even one laborer), most states require you to carry Workers' Comp. Verify your subcontractors' coverage certificates before they start work — if they're uninsured, you could be liable.

Estimates are for planning purposes only. Verify quantities with your supplier and confirm code requirements with your local building department.