Builder's Risk insurance

6 Replies

My lender is requiring 12 mos policy for Builder's Risk Insurance. They are also requiring the GC to complete construction in 6 mos which is plenty of time. However they still require a full year of BRI. Does anyone know of a company  that charges monthly for premiums or a company that refunds once the construction is done? Our normal insurer we typically use requires full upfront payment for the one year with no option to refund if completion is finished in 6 months.


What’s being built and what is the finished value?

Full rehab on a SF home in Texas with Smalley efficiency in back . 180kpurchase with 110k rehab cost

Builder's Risk is written by many Independent Insurance Agencies. In my Experience, don't think you find on that does anything less than 3 and probably 6 Months paid Upfront & NO Refunds.

I use USLI. You can pay quarterly and will refund any unused portion.
We also use USLI. typically builders risk is fully earned. And if is 3 months or a year doesnt really change the premium. The other half which is your general liability is usually pro rated. find a good broker in your area who can compare quotes.

 it can be very difficult to purchase or extend the policy mid-project, if you encounter any type of delay. So, it usually makes sense to purchase a longer period than estimated construction.

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