Builders risk insurance covers structures while they’re being built â protecting against losses that no other policy will cover. Required by virtually every lender on a new construction loan and by most general contractors on subcontracted work. Safenet Insurance Group writes builders risk across NC for ground-up new construction and renovation/remodel projects. Call (336) 280-4606 or quote online.
Who Needs Builders Risk Insurance
- Homeowners building a new home
- Property owners doing major renovations
- Real estate investors doing fix-and-flip projects
- General contractors building spec homes
- Developers on new construction projects
- Property owners during multi-month additions or remodels
What Builders Risk Covers
- The structure under construction â protects materials and labor against fire, wind, hail, lightning, theft, and vandalism
- Materials on site â lumber, drywall, fixtures, appliances waiting to be installed
- Materials in transit â covers materials being delivered to the job site
- Temporary structures â scaffolding, fencing, signage
- Debris removal â cleanup costs after a covered loss
- Soft costs (often optional) â interest, taxes, fees during delayed completion after a loss
Who Should Buy and Hold the Policy
On most NC projects, the owner buys the builders risk policy and the general contractor is named as additional insured. On other projects, the GC buys the policy and the owner is named. Either works; what matters is that someone has it before construction starts.
Project Duration and Renewal
Builders risk policies are typically written for 3, 6, or 12 months and can usually be extended if the project runs long. The policy ends at substantial completion â once the structure is occupied or the project is accepted by the owner, it’s time to convert to a permanent homeowners or commercial property policy.
Frequently Asked Questions
How much does builders risk cost in NC?
Typical rates run $1â$4 per $1,000 of project value for the policy term. A $500,000 build might cost $1,500â$3,000 for a 12-month policy.
Does builders risk include liability?
No. Liability is separate (general liability for the contractor; the owner’s home or commercial liability). Builders risk is property coverage only.
Can I get builders risk for a renovation?
Yes. Renovation builders risk policies are widely available, though the rate and form depend on the scope and whether the home is occupied during construction.
Get a Builders Risk Quote
Call Safenet Insurance Group at (336) 280-4606 or quote online.