Builder’s Risk Insurance

Soft cost coverage reimburses the owner or contractor for additional expenses caused by a covered delay — including extended interest on construction loans, additional architect or engineering fees, increased permit costs, and lost rental income. This coverage is highly recommended for commercial and multi-unit residential projects.

Soft costs can dramatically increase the financial impact of a covered loss, so adding the endorsement at policy inception is more cost-effective than discovering the gap after a claim.

Bridgeway Insurance can typically provide a builders risk quote within 24 to 48 hours, provided the construction value, project address, scope, and start date are available. Complex projects with high theft exposure, accelerated timelines, or coastal locations during hurricane season may take longer to underwrite.

Request a builders risk quote or call us directly to start the underwriting process.

Yes — most builders risk policies cover theft of building materials on-site and in transit, typically up to a sublimit of 25% of the policy limit. This includes copper wire, HVAC equipment, lumber, and appliances staged for installation.

Importantly, theft is a major exposure on urban job sites in metro Atlanta, Nashville, Memphis, Charlotte, and the Florida coast — security measures like perimeter fencing, lighting, and after-hours monitoring can reduce premiums by 10% to 20%.

Yes. Homeowners undertaking major renovations, additions, or rebuilds where the existing homeowners policy will not respond can purchase a builders risk policy. This is common for additions, gut renovations, and rebuilds after total losses such as hurricane or tornado damage.

Importantly, once the project is complete and the certificate of occupancy is issued, coverage transitions back to a standard homeowners insurance policy.

None of the seven states Bridgeway serves (MS, AL, LA, FL, TN, NC, GA) statutorily mandate builders risk insurance. However, virtually every construction lender requires it before disbursing funds, and many commercial owners require it in their construction contracts.

As a practical matter, builders risk is required for any financed project — the lender will insist on being named as loss payee on the policy.

Common exclusions include flood, earthquake, employee theft, faulty workmanship or design, normal wear and tear, war or terrorism, and damage from contractors’ tools and equipment unless specifically scheduled. Notably, soft costs (extended loan interest, additional permit costs, lost rental income) and contractor equipment require specific endorsements.

Importantly, general liability insurance is a separate policy that handles third-party bodily injury and property damage claims — not damage to the structure itself.

Standard builders risk policies exclude flood damage. For projects in Special Flood Hazard Areas (SFHAs) — common throughout coastal areas, the lower Mississippi River basin, and floodplains across the Southeast — you should add a separate flood policy through the NFIP or a private flood carrier.

Bridgeway Insurance can coordinate builders risk with flood insurance to eliminate gaps before storm surge or river flooding events.

Yes — but coastal builders risk policies typically include a separate named-storm or hurricane deductible (commonly 2% to 5% of the total insured value) rather than a flat-dollar deductible. On a $500,000 project with a 5% wind deductible, that means the contractor or owner is responsible for the first $25,000 of any hurricane-related loss.

For projects in Florida, Louisiana, coastal Mississippi, Alabama, North Carolina, and Georgia, named-storm provisions are critical.

It depends on the construction contract. AIA standard contracts typically place responsibility on the property owner, while design-build and many custom-home contracts place it on the contractor. Importantly, the named insureds usually include the owner, the general contractor, and the lender as loss payee.

Bridgeway Insurance helps clarify these contract requirements and structure the policy to cover all parties with a financial interest in the project.

Most builders risk policies are written for 3, 6, 9, or 12 months — matching the projected construction timeline. Coverage typically ends when the certificate of occupancy is issued, the project is occupied, or the term expires, whichever comes first. Extensions are usually available in 30, 60, or 90-day increments.

For coastal projects, plan policy terms carefully around hurricane season (June 1 – November 30) since carriers may impose binding moratoriums or rate adjustments at extension time.

Builders risk insurance typically costs between $0.75 and $4.50 per $100 of insurable construction value annually. Costs vary by state — coastal Florida and Louisiana run higher due to hurricane exposure, while inland Tennessee and Mississippi projects often run lower.

For state-specific cost ranges, see our guides for Mississippi, Alabama, Louisiana, Florida, Tennessee, North Carolina, and Georgia.

Builders risk insurance — also called “course of construction insurance” — is a specialized property policy that covers a structure while it is under construction or undergoing major renovation. It protects the building, materials on-site or in transit, and temporary structures like scaffolding from fire, theft, vandalism, wind, lightning, and other covered perils.

Bridgeway Insurance writes builders risk coverage across Mississippi, Alabama, Louisiana, Florida, Tennessee, North Carolina, and Georgia. Request a builders risk quote to compare carriers.