Builder’s Risk Insurance for Building a New Home 

Building a new home can introduce risks that may affect your investment before construction is finished. Severe weather and on-site incidents can cause costly delays or damage. Builder’s risk insurance can help address these concerns during construction.

What Is Builder’s Risk Insurance?

Standard homeowners insurance typically applies after a property is completed and occupied. Builder’s risk coverage can fill the gap by addressing losses that occur while the project is still in progress. It may provide financial protection for homes and other structures during construction.

Why Is Builder’s Risk Insurance Important?

Construction projects in Texas may face weather-related threats, including strong winds, hail and severe storms. Damage from these events can lead to costly repairs or the replacement of materials. Without builder’s risk insurance, these expenses may fall on the homeowner or contractor. Many lenders and contractors also require this type of policy before construction begins.

What Does This Policy Typically Cover?

A builder’s risk policy may cover many incidents that could occur during construction, including:

• Fire, lightning and windstorm damage
• Theft of building materials or equipment
• Vandalism
• Specific types of water damage

Coverage may also apply to materials stored at the construction site or transported to the location. Temporary structures and specific project-related expenses, such as permits or architectural services, may also be included if a covered loss causes delays. Policy terms and limits vary, so review policy details with an insurance agent to align coverage with the project.

We’re Here to Help

Family Affordable Insurance helps Texas clients secure builder’s risk insurance. Our team can assess your exposures and help you secure suitable coverage. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.