Builders Risk Insurance Cost Calculator
Where your number comes from
- Insured valueNew home, ADU or detached garage$350,000
- Base rateWood or light-gauge frame · $1.60–$4.50 per $1,000$2.68
- Project typeNew construction×1.00
- LocationLow catastrophe risk (most inland areas)×1.00
- Deductible$2,500 per claim×1.00
- Claims historyNo claims in 5 years×1.00
- Project sizeNo volume credit under $1 million×1.00
- Policy term9 months×0.81
- Add-onsNone selected×1.00
- Minimum premiumFormula is above the carrier minimumnot applied
- Surplus-lines tax and feeNot expected for this project$0
- Typical estimate9 months, before any discounts you negotiate$765
Many insurance sites quote builders risk at "1% to 4% of project cost." Published per-$1,000 rates put most homes and remodels well under 1%; the higher figures mostly come from very small jobs, where a minimum premium of a few hundred dollars is a big share of the cost. Beyond that, the real driver is the rate per $1,000 — which depends far more on what the building is made of and where it stands than on its price. A wood-frame house in a coastal hurricane county can cost about four times as much to insure as the same house built in block inland.
A 9-month builders risk policy on a $350,000 new home with wood-frame construction in a low-risk inland area is estimated at $765 — about 0.22% of the insured value — with most quotes likely between $455 and $1,280.
- Ask for quotes on $350,000 of completed value — labor and materials only, never the land.
- Raising the deductible from $2,500 to $5,000 would change the estimate by about −$60.
- Buy the full schedule plus a cushion: three more months now adds about $175, while an extension after the policy expires is priced however the insurer chooses.
Key Answers About Builders Risk Insurance Cost
Each answer is recalculated from the project in the calculator above — change any entry and these update with it.
For this project — $350,000 of insured value, new home, wood-frame construction, 9 months — expect about $765, with most quotes between $455 and $1,280. Quotes outside that range usually mean a different deductible, a narrower or broader policy form, or a carrier that doesn't want the risk.
About 0.22% of insured value, or $2.18 per $1,000. That is well below the "1% to 4%" figure often quoted online. That range mostly reflects small projects, where a minimum premium of a few hundred dollars is a big share of the cost; large commercial jobs regularly price well under 0.5%.
Builders risk is usually paid up front for the whole term rather than monthly. Spread over 9 months, this estimate works out to about $85 a month. If the job finishes early, ask whether the policy allows a partial refund — many builders risk policies are fully earned once written.
At a $1,000 deductible the estimate is about $840; at $5,000, $700; at $10,000, $655; at $25,000, $610. Pick the largest deductible you could pay from savings without stalling the build — and note that wind, hail and earthquake often carry their own percentage deductible.
Three more months — 12 instead of 9 — adds about $175. Short policies are not priced pro rata: a six-month policy typically costs 60% to 65% of a 12-month one, because much of the risk sits in the first weeks of framing and roofing.
Built in wood frame, this project would run about $765; in masonry, block or ICF about $590; in steel about $425; in concrete about $425. An open wood frame can burn completely before drywall and sprinklers are in, so frame carries the highest rate.
Your location setting multiplies the price by ×1.00. The same project would be about $765 in a low-risk inland area and about $2,550 in a coastal hurricane county, where insurers also add a separate named-storm deductible, commonly 2% to 5% of insured value.
Whoever the construction contract says. Under the widely used AIA A201 general conditions, the owner buys it by default; on many custom homes and remodels the builder carries a policy and folds the cost into the price. Get it in writing, and make sure both owner and contractor are named on the policy.
Builders Risk Cost by Construction Type
Your project priced four ways, with everything else held the same. You picked Wood or light-gauge frame.
Loading chart…
| Construction | Typical | Likely range | vs. yours |
|---|---|---|---|
| Wood or light-gauge frame yours | $765 | $455 – $1,280 | — |
| Masonry, block (CBS) or ICF walls | $590 | $425 – $980 | −$175 |
| Steel / non-combustible | $425 | $425 – $570 | −$340 |
| Fire-resistive concrete | $425 | $425 | −$340 |
Insurers sort buildings into classes by how they burn. Wood and light-gauge frame is the most expensive class because an open frame — before drywall, sheathing and sprinklers — can be lost completely in a single fire. Masonry, block (CBS) and insulated concrete form (ICF) walls typically price roughly 20% to 30% lower, and steel or poured concrete lower still. If you don't tell an insurer what you're building with, it may assume frame.
How the Deductible Changes Your Premium
The same policy at each common deductible. Yours is $2,500.
| Deductible per claim | Estimated premium | vs. yours |
|---|---|---|
| $1,000 | $840 | +$75 |
| $2,500 yours | $765 | — |
| $5,000 | $700 | −$60 |
| $10,000 | $655 | −$105 |
| $25,000 | $610 | −$155 |
In hurricane, hail and earthquake areas, builders risk policies usually carry a separate deductible for those perils set as a percentage of the insured value — commonly 1% to 2% for wind and hail, and 2% to 5% for named storms and earthquake. On a $500,000 home, a 5% named-storm deductible is $25,000. Ask for every deductible in writing before you compare quotes.
How Policy Length Affects Builders Risk Cost
Loading chart…
| Policy length | Estimated premium | Per month |
|---|---|---|
| 3 months | $425 | $140 |
| 6 months | $585 | $100 |
| 9 months yours | $765 | $85 |
| 12 months | $940 | $80 |
| 18 months | $1,450 | $80 |
| 24 months | $1,950 | $80 |
Builders risk is written for the length of the job, most often 3, 6, 9 or 12 months. It is not priced pro rata — a six-month policy usually costs 60% to 65% of a full year — so a short job still pays a meaningful share of the annual rate. Buy your contractor's schedule plus about three months. Running past the end date leaves the project uninsured until an extension is approved, and extensions after expiration are priced at the insurer's discretion.
Builders Risk Insurance Cost Examples
Seven common projects run through the same rate model, from a small remodel to a $20 million commercial building.
| Project | Insured value | Term | Typical | Likely range | % of value |
|---|---|---|---|---|---|
| Aging-in-place bathroom and kitchen remodel | $60,000 | 4 mo | $425 | $425 | 0.71% |
| Detached ADU for a parent, wildfire area | $150,000 | 6 mo | $455 | $425 – $760 | 0.30% |
| New frame home in the hail belt | $300,000 | 9 mo | $885 | $525 – $1,480 | 0.29% |
| Whole-house renovation, 1960s home, existing house insured | $550,000 | 9 mo | $3,160 | $1,950 – $5,200 | 0.57% |
| Block (CBS) retirement home on the Gulf Coast | $800,000 | 12 mo | $5,690 | $3,480 – $9,350 | 0.71% |
| 24-unit wood-frame apartment building | $3,000,000 | 18 mo | $28,800 | $17,100 – $48,200 | 0.96% |
| Steel medical office building | $20,000,000 | 18 mo | $23,400 | $14,800 – $37,000 | 0.12% |
Two patterns stand out. Small projects pay a much higher percentage because of the minimum premium, and the percentage falls steadily as projects get bigger and are built from less combustible materials. Coastal and wildfire locations can outweigh every other factor combined.
What Builders Risk Covers — and What It Doesn't
- The building under construction, plus materials and supplies on site
- Fire, lightning, wind and hail, explosion and vandalism
- Theft of materials and installed equipment, if the site is reasonably secured
- Materials in transit or stored off site, usually up to a smaller sublimit
- Temporary structures such as scaffolding and construction fencing
- Injuries and damage to other people's property — that's general liability
- Flood and earthquake, unless added back with their own limits
- Fixing faulty work or design, unless it causes other damage
- Contractors' tools and equipment — they need their own policy
- Wear and tear, and delay costs without physical damage, unless soft-cost coverage is added
- Any loss after the building is occupied or put to its intended use, unless the policy is endorsed
What to Do in Your Situation
A detached unit is new construction, so your homeowners policy may cover it only up to its "other structures" limit — often 10% of the house's coverage — or not at all while it's being built. Ask your homeowners insurer first; some will write a short builders risk policy or a course-of-construction endorsement. Once the unit is finished, add it to your homeowners policy before anyone moves in, because builders risk coverage typically ends at occupancy.
For a bathroom or kitchen remodel under about $100,000, builders risk often costs only the insurer's minimum premium. Before you buy, read your homeowners policy for a renovation or vacancy clause — many reduce or suspend coverage if the home is unoccupied for more than 30 to 60 days. If you'll move out during the work, tell your insurer in writing.
That usually means general liability, which pays for injuries and damage to neighbors, not for your house burning down mid-build. Ask for a certificate showing builders risk specifically, with you listed as a named insured or loss payee, the full completed value as the limit, and an end date past the schedule. Your lender may require the same.
Owner-builders can buy builders risk, though fewer insurers write it and some charge more or require a construction resume. You'll also need general liability, and workers' compensation if you hire anyone directly. Lenders on construction loans usually require builders risk before the first draw.
Expect fewer insurers, a separate named-storm deductible of 2% to 5% of insured value, and possible restrictions on starting coverage once a storm has formed. Buy before hurricane season, budget cash for the named-storm deductible, and ask whether flood is included or needs a separate policy — the National Flood Insurance Program also writes flood coverage for buildings under construction.
How This Calculator Estimates Your Premium
We start from a planning rate per $1,000 of completed value for each construction class, based on published 2026 builders risk pricing for a 12-month policy with a $2,500 deductible at a low-risk inland site: about $1.60–$4.50 for wood frame, $1.25–$3.45 for masonry, $0.80–$2.00 for steel and $0.60–$1.50 for concrete. The low end of each range gives your low estimate, the high end your high estimate, and the midpoint your typical figure.
That rate is then multiplied by factors for project type (about 1.5× for remodels and 2.6× for buildings from before 1980), location risk (up to about 3× in coastal hurricane counties), deductible, claims history, a volume credit for projects over $1 million, policy length, and add-ons (about +10% for soft costs and +15% for flood). We apply a minimum premium of about $425, and for coastal, older-building and repeat-claim projects — which often go to surplus-lines insurers — add a 5% tax and a $150 policy fee.
Real quotes depend on the insurer, the policy form, your contractor's experience, site security and current market conditions, so treat this as a planning number and get at least two quotes from a licensed agent or broker.
This calculator gives planning estimates only. It is not an insurance quote, offer or advice, and actual premiums, terms and availability are set by insurers and vary by state, carrier and project. BudgetSeniors.com is not an insurance agency and does not sell or recommend specific policies. Talk to a licensed insurance agent or broker, and have a lawyer review insurance requirements in your construction contract.
Key sources: Insureon builders risk cost data · Builders Risk Nerd rate tables · Terrapin Construction Group 2026 builders risk guide · ConstructionCoverage.com · Lockton 2026 construction market update · AIA Document A201 General Conditions