Building a new home, commercial building, or investment property in Texas? Before construction begins, make sure the project itself is properly protected.

New construction builder’s risk insurance is designed to protect buildings and qualifying materials while they are under construction.

Builders Risk Texas helps property owners, builders, general contractors, developers, and real estate investors find builder’s risk coverage for new construction projects throughout Texas.

Whether you're building a custom home, investment property, office, retail building, or other commercial structure, we'll help you explore coverage designed for the project.

Get a New Construction Builder’s Risk Quote

Call 817-930-5022

Builder’s risk insurance, sometimes called course of construction insurance, is a form of property insurance designed specifically for buildings while they are being constructed.

A standard homeowners or commercial property policy is generally designed for a completed building. A new construction project creates different risks.

From the foundation to final completion, money is constantly being invested in labor, building materials, fixtures, and the structure itself.

A builder’s risk policy helps protect that investment against covered property losses while construction is underway.

Coverage varies by insurance company and policy form, but builder’s risk policies may provide protection for the building under construction and qualifying property that will become a permanent part of the structure.

Depending on the policy, coverage may be available for:

• Building materials and supplies
• Fixtures being installed
• Materials temporarily stored at the construction site
• Certain materials in transit
• Certain materials temporarily stored off-site
• Temporary structures
• Debris removal following a covered loss
• Certain additional or soft costs

Policies may provide coverage for losses caused by events such as fire, lightning, theft, vandalism, wind, hail, and other covered causes of loss.

Coverage, deductibles, limitations, and exclusions vary considerably between policies. We'll help you evaluate available options for your specific project.

Builder’s risk isn't only for construction companies.

Several parties can have a financial interest in a building while it is under construction.

If you're paying to build a new home or commercial property, you can have hundreds of thousands — or millions — of dollars invested before the building is finished.

Builder’s risk can help protect that investment during construction.

Depending on the construction agreement, a builder or general contractor may be responsible for arranging builder’s risk coverage.

Building a new property to sell, lease, or hold as an investment creates a significant financial exposure during construction.

Residential and commercial developers may need builder’s risk coverage for qualifying new construction projects.

Banks and other construction lenders commonly require builder’s risk insurance as part of their loan requirements.

The construction contract and loan documents should be reviewed to determine who is responsible for purchasing the policy and which parties need to be included.

Building a house from the ground up?

Builder’s risk insurance can provide property protection while the home is being constructed.

We can help find coverage for qualifying residential projects such as:

• Custom homes
• Spec homes
• Investment properties
• Rental homes under construction
• Single-family homes
• Certain multi-family projects
• Owner-built homes
• Contractor-built homes

Every project is different. Construction type, location, value, protection class, project duration, and other factors can affect eligibility and pricing.

Request a Residential Builder’s Risk Quote

Commercial construction projects can involve larger values and more complicated insurance requirements.

Coverage may be available for qualifying projects such as:

• Office buildings
• Retail buildings
• Warehouses
• Restaurants
• Professional buildings
• Mixed-use properties
• Certain multi-family projects
• Other commercial structures

Commercial builder’s risk underwriting may consider the project's construction type, total completed value, square footage, location, fire protection, contractor experience, project duration, and surrounding exposures.

Larger or more complicated projects may require additional underwriting information.

This is one of the most important questions when insuring new construction.

Builder’s risk coverage is commonly based on the estimated completed value of the insured construction, subject to the requirements of the particular insurance carrier and policy.

That means you generally shouldn't insure a project based only on what you've spent when the policy starts.

For example, suppose a building has an estimated completed construction value of $750,000.

Even though only $100,000 may have been spent during the early stages of construction, the appropriate builder’s risk limit may need to reflect the estimated value of the completed insured project rather than the amount invested so far.

The appropriate value can include qualifying:

Materials + Labor + Construction Costs = Estimated Completed Value

Land value generally should not simply be added to the building limit as though it were part of the constructed property.

The exact valuation method and amount should be determined according to the carrier's underwriting requirements and policy terms.

Ideally, builder’s risk insurance should be arranged before construction begins.

Waiting until construction is already underway can create problems.

Some insurance companies will consider projects that have already started, but they may limit eligibility based on how far construction has progressed.

For example, the carrier may ask:

• When did construction begin?
• What percentage is currently complete?
• Have there been any losses?
• Has the property been continuously insured?
• Why wasn't builder’s risk purchased before construction started?

If you're preparing to break ground, arranging insurance early can give you more options.

Builder’s risk policies are designed to cover a temporary construction period.

Depending on the insurance company, policy terms may be available for periods such as 3, 6, or 12 months, with other terms or extensions potentially available.

But builder’s risk coverage doesn't necessarily continue simply because the policy expiration date hasn't arrived.

Coverage may terminate or change when certain events occur, depending on the policy language. These can include completion of construction, occupancy, sale of the property, or another party taking over the property.

Once construction is completed, the property will generally need to transition to the appropriate permanent property insurance.

Theft can be a major concern on Texas construction sites.

Building materials, appliances, fixtures, copper, and other valuable property can be attractive targets.

Builder’s risk policies may provide theft coverage for qualifying property, but you should never assume that everything at the job site is covered.

For example, a builder’s risk policy may treat building materials differently from a contractor's own tools and equipment.

Contractors' tools and equipment may require separate inland marine or contractors equipment insurance.

We can help identify these potential coverage gaps.

Wind and hail are major considerations for construction projects in Texas.

Coverage depends on the insurance company, policy form, property location, deductibles, and endorsements.

This becomes particularly important for projects in areas with significant wind, hail, or coastal exposures.

Don't assume that every builder’s risk quote provides identical wind and hail protection.

When comparing quotes, the coverage terms and deductibles can be just as important as the premium.

Builder’s risk is property insurance. It does not replace all of the other insurance a contractor, builder, or property owner may need.

Depending on the policy, exclusions or limitations can apply to certain causes of loss and types of property.

Builder’s risk generally should not be viewed as a replacement for:

Builder’s risk protects insured property against covered losses. General liability addresses certain claims involving bodily injury or property damage to others.

Workers’ compensation addresses qualifying work-related employee injuries and occupational illnesses.

Vehicles used in the construction business typically require appropriate automobile coverage.

Tools, machinery, and equipment owned by a contractor may require separate coverage.

Flood is commonly excluded from standard property coverage. Separate or additional coverage may be needed depending on the project.

Your insurance needs will depend on who owns the property, who is performing the work, the construction contract, and the specific project.

Having the project information ready can make obtaining a quote much easier.

We will typically need information such as:

• Construction address
• Property owner
• General contractor
• Type of building
• Residential or commercial use
• Estimated completed value
• Square footage
• Number of stories
• Construction type
• Construction start date
• Estimated completion date
• Current percentage completed, if already started
• Description of the project
• Protection and security information
• Prior loss information

Larger commercial projects may require construction budgets, plans, contractor information, or additional underwriting documentation.

Builder’s risk can look simple until you start comparing policies.

Different carriers can have different eligibility requirements, coverage forms, deductibles, exclusions, and underwriting guidelines.

Builders Risk Texas is backed by Bergen Insurance Agency, an independent Texas insurance agency experienced in working with contractors and commercial insurance.

Because we're independent, we're not limited to offering one insurance company's solution.

Our goal is to understand the construction project first and then identify available insurance options appropriate for that risk.

We can also help contractors evaluate related coverage including general liability, commercial auto, workers’ compensation, and tools and equipment insurance.

We help insure qualifying construction projects throughout Texas, including Dallas–Fort Worth, Houston, Austin, San Antonio, Fort Worth, Dallas, Weatherford and communities across the state.

Whether you're building a new custom home in North Texas or developing a commercial property elsewhere in Texas, we can help you explore builder’s risk options.

There isn't a general Texas requirement that every new construction project carry builder’s risk insurance. However, lenders, construction contracts, property owners, or other parties may require it.

It depends on the construction agreement. Either party may be responsible for obtaining coverage. The contract and lender requirements should be reviewed before purchasing the policy.

Possibly. Some carriers will consider projects already underway, although eligibility can depend on the percentage completed, project history, prior insurance, and whether there have been any losses.

Yes. Property owners can potentially purchase builder’s risk coverage for qualifying construction projects even when a general contractor is performing the work.

Yes, depending on the project and contractual arrangement. The appropriate named insureds and other interested parties should be addressed when the policy is written.

Builder’s risk is intended to insure covered construction and property, not the underlying land itself.

Not necessarily. Builder’s risk and general liability protect against different exposures. A contractor or property owner may need separate liability insurance.

Potentially. Speculative residential construction and investment properties may qualify depending on the carrier and details of the project.

Before you break ground, make sure the investment you're putting into your construction project is properly protected.

Builders Risk Texas can help you find coverage for qualifying residential and commercial new construction projects throughout Texas.

Tell us what you're building, where you're building it, the estimated completed value, and when construction is expected to begin.

We'll help you explore the available options.

Get a Builder’s Risk Quote

Call 817-930-5022

New construction builder’s risk insurance for projects throughout Texas.

Powered by Bergen Insurance Agency — Weatherford, Texas.