Remodeling or renovating an existing property can create insurance exposures that aren't present with new construction.

You already have a building with value — and now you're adding new materials, labor, fixtures, and improvements to it.

Renovation builder’s risk insurance can help protect qualifying residential and commercial properties while remodeling or construction work is underway.

Builders Risk Texas helps property owners, real estate investors, builders, and general contractors find coverage for renovation and remodeling projects throughout Texas.

Whether you're completely renovating an investment property, adding onto a home, or remodeling a commercial building, we'll help you explore coverage designed for the project.

Get a Renovation Builder’s Risk Quote

Call 817-930-5022

Builder’s risk insurance isn't limited to buildings being constructed from the ground up.

Coverage may also be available for an existing building undergoing renovation, remodeling, or an addition.

These projects can be more complicated to insure than new construction because there are potentially two separate property values at risk:

The Existing Structure + The New Improvements

For example, you might purchase an existing property worth $300,000 and then invest another $150,000 in renovations.

Simply purchasing $150,000 of builder’s risk coverage for the improvements may not adequately address the exposure to the existing building.

The appropriate policy structure depends on the project, property, carrier, valuation method, and who is responsible for insuring the existing structure.

A standard homeowners, landlord, or commercial property policy isn't necessarily designed for a building undergoing substantial construction.

Major renovations can change the property's:

• Occupancy
• Value
• Condition
• Fire exposure
• Electrical and plumbing systems
• Structural integrity
• Vacancy status
• Security
• Construction activity

Some existing property policies also contain conditions, exclusions, or limitations related to vacancy, renovation, or construction.

That's why it's important to discuss the project with an insurance professional before work begins.

Coverage varies significantly between insurance companies and policy forms.

Depending on the policy, coverage may be available for:

• Existing structures
• Renovations and improvements
• Building materials
• Fixtures being installed
• Materials temporarily stored on-site
• Certain materials in transit
• Certain off-site materials
• Temporary structures
• Debris removal following a covered loss
• Certain soft costs

Policies may provide coverage for causes of loss such as fire, lightning, theft, vandalism, wind, hail, and other covered events, subject to policy terms, deductibles, exclusions, and endorsements.

The important part is making sure the policy is structured around the actual renovation project rather than assuming every builder’s risk policy works the same way.

This is one of the biggest differences between new construction and renovation builder’s risk.

With new construction, the building starts with little or no existing structural value.

With a remodel, a valuable building is already standing before construction begins.

Imagine you purchase a house for renovation.

The existing building has an insurable structure value of $350,000, and you're planning $125,000 in improvements.

During construction, a covered fire causes extensive damage to both the original structure and the newly installed improvements.

If the policy only addresses the $125,000 renovation exposure, you could have a significant gap involving the existing building.

That's why we want to know:

Who is insuring the existing structure?

How is the existing structure valued?

How much will be spent on improvements?

What will the property be worth when construction is completed?

These questions can be just as important as the price of the policy.

Major residential remodeling projects can involve significant investments in materials and labor.

Coverage may be available for qualifying projects such as:

• Whole-house renovations
• Major interior remodels
• Home additions
• Kitchen and living-area expansions
• Structural renovations
• Fire-damaged property renovations
• Older home renovations
• Investment property renovations
• Fix-and-flip projects
• Rental property renovations

Small cosmetic projects may not require a builder’s risk policy. The appropriate insurance depends on the extent of the construction and the existing property coverage.

Request a Residential Renovation Quote

Buying a distressed or outdated property, renovating it, and then selling or renting it creates a unique insurance situation.

The property may be:

Vacant + Under Renovation + Increasing in Value

That combination may not fit a standard homeowners or landlord policy.

Renovation builder’s risk may be an option for qualifying investment properties undergoing substantial construction.

We can help evaluate projects involving:

• Fix-and-flip properties
• Vacant homes under renovation
• Rental properties being rehabilitated
• Investment homes
• Major property rehabs
• Properties being renovated before resale

If the property will remain vacant during construction, tell us upfront. Vacancy can materially affect underwriting and coverage.

Builder’s risk may also be appropriate when an existing commercial building undergoes substantial renovations.

Projects may include:

• Office renovations
• Retail building renovations
• Restaurant build-outs
• Warehouse renovations
• Commercial property redevelopment
• Mixed-use property renovations
• Tenant improvements
• Major building additions

Commercial renovations can involve additional considerations such as occupancy during construction, neighboring tenants, sprinkler systems, fire protection, structural work, project value, and business operations.

We'll help identify the information underwriters need to evaluate the project.

Vacancy is an important insurance consideration.

Many renovation projects involve properties that will remain completely vacant while construction is underway.

Vacant buildings can present increased exposures to:

• Theft
• Vandalism
• Undetected water damage
• Fire
• Trespassing
• Delayed discovery of a loss

A standard property policy may contain limitations related to vacancy.

If your property will be vacant while it is being remodeled, the insurance carrier needs to know.

Builder’s risk or another specialized property policy may be needed depending on the circumstances.

Renovation projects require more careful valuation than many people expect.

There may be several numbers involved:

The insurable value of the building before renovations begin.

The value of the new labor, materials, fixtures, and improvements being added.

The estimated insurable value of the completed project.

These numbers are not necessarily interchangeable.

For example:

Existing Structure: $400,000

Renovation: $200,000

Estimated Completed Construction Value: $600,000

That does not automatically mean every builder’s risk policy should simply be written for $600,000.

Different insurance carriers and policy forms can treat the existing building and renovations differently.

We'll review how the project is structured and help determine what values the insurance company needs to properly quote the risk.

This is another important issue with renovation builder’s risk.

Depending on the policy, the existing structure and new improvements may not necessarily be valued the same way.

For example, certain policies may provide different valuation provisions for an older existing structure than for newly installed construction.

Actual cash value can account for depreciation, while replacement cost generally approaches valuation differently, subject to policy conditions.

Don't assume that seeing a total property limit automatically tells you how every portion of a renovation loss will be settled.

The valuation provisions in the actual policy matter.

Ideally, arrange coverage before remodeling begins.

Some carriers may consider projects that are already underway, but eligibility can become more difficult once construction has started.

If work has already begun, an underwriter may want to know:

• Original construction start date
• Percentage of work completed
• Work completed so far
• Remaining construction cost
• Current condition of the property
• Whether the building is occupied
• Whether there have been any losses
• Why insurance wasn't obtained before construction began

Getting coverage in place before work starts generally provides more options.

Don't assume it does.

Builder’s risk is primarily designed to protect covered property associated with the construction project.

A contractor's own tools and equipment — such as generators, compressors, power tools, saws, and other equipment — may require separate contractors equipment or inland marine insurance.

Contractors should also consider whether they need general liability, commercial auto, workers’ compensation, and other business insurance.

To start a quote, be prepared to provide:

• Property address
• Property owner
• General contractor
• Current use of the building
• Residential or commercial property
• Existing structure value
• Renovation budget
• Estimated completed value
• Description of renovations
• Square footage
• Year built
• Construction type
• Construction start date
• Estimated completion date
• Current percentage complete
• Whether the property is occupied or vacant
• Structural changes being made
• Prior loss information

More complex renovations may require additional underwriting information.

Renovation builder’s risk is an area where the details matter.

A low premium doesn't help much if the policy doesn't properly address the existing structure or the work being performed.

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

We're not limited to one insurance company.

We can evaluate available insurance markets based on the property's location, existing structure, renovation cost, occupancy, project duration, construction type, and other underwriting characteristics.

For contractors, we can also help with general liability, commercial auto, workers’ compensation, and tools and equipment coverage.

Builders Risk Texas helps customers find coverage for qualifying remodeling and renovation projects throughout the state.

We can assist with projects in Dallas–Fort Worth, Houston, Austin, San Antonio, Fort Worth, Dallas, Weatherford, and communities throughout Texas.

From a North Texas investment property undergoing a complete rehab to a commercial building renovation, we'll help you explore available builder’s risk options.

Potentially, yes. Builder’s risk coverage may be available for qualifying existing homes undergoing substantial renovations or additions.

It can, depending on the policy. Existing structure coverage is one of the most important issues to address when insuring a renovation project.

Potentially. Some insurance markets specialize in properties that are vacant and undergoing renovation. Eligibility depends on the property and scope of work.

Yes, qualifying fix-and-flip projects may be eligible for renovation builder’s risk coverage.

It depends on the extent of the work. A small cosmetic renovation may be handled differently from a major structural remodel. The existing homeowners or property carrier should also be informed about significant renovations.

Possibly. Some carriers accept projects already underway, but eligibility can depend on the percentage completed and other underwriting factors.

Not necessarily. Builder’s risk is primarily property coverage. General liability and other liability exposures may require separate insurance.

Builder’s risk is temporary construction coverage. When the project is completed, the property generally needs to transition to the appropriate permanent homeowners, landlord, or commercial property insurance.

Renovating an existing property creates different insurance challenges than building from the ground up.

We'll help you consider the existing structure, renovation costs, completed value, vacancy, construction type, and project duration when looking for coverage.

Whether you're a property owner, investor, house flipper, builder, or general contractor, Builders Risk Texas can help you explore insurance options for qualifying renovation projects throughout Texas.

Tell us where the property is located, what it's worth today, how much you're spending on renovations, and what work is being performed.

We'll help you take it from there.

Get a Renovation Builder’s Risk Quote

Call 817-930-5022

Builder’s risk insurance for remodeling and renovation projects throughout Texas.

Powered by Bergen Insurance Agency — Weatherford, Texas.