Builders Risk Insurance in Texas - Coverage for Homes & Construction Projects

Who Needs Builders Risk Insurance?

Whether you’re building a home from the ground up or tackling a large-scale commercial development, Builders Risk Insurance provides essential protection for the construction industry. Those who typically need this coverage include:

• Builders & Contractors – Safeguard your investment in tools, materials, and labor.
• Property Owners & Developers – Protect your project and manage construction-related risks.
• House Flippers – Cover renovation projects beyond the scope of standard homeowners’ insurance.
• Lenders or Investors – Ensure your financial interest is protected until construction is complete.

Frequently Asked Questions About Builders Risk Insurance

– Is Builders Risk Insurance required by law?

Builders Risk Insurance is not typically mandated by law, but certain lenders or contracts may require it to protect their financial interests.

– Can the policy be extended if the project is taking longer?

Yes, many Builders Risk policies offer extension options to accommodate delays or extended timelines.

– As a home flipper with a homeowner’s policy, should I also consider a Builders Risk Policy?

Absolutely. A typical Homeowners’ policy does not usually cover risks associated with construction projects, making a Builders Risk Policy a critical addition.

– Does builders risk insurance cover theft?

Yes, builders risk insurance also known as course of construction insurance, typically covers theft of materials, fixtures, and equipment at the job site, whether stored on-site, in transit, or temporarily off-site. However, employee theft is a common exclusion, so contractors with larger crews may want to consider a separate crime or fidelity bond for that exposure.

– How long does a builders risk policy last, and what happens if the project runs over?

Most builders risk policies are written for 3, 6, or 12 months to match the expected construction timeline. If your project runs long, which is common in East Texas given weather delays and permitting timelines most policies can be extended before they expire. It’s important to request an extension proactively rather than letting the policy lapse mid-project, since reinstatement isn’t always guaranteed.

– How is builders risk insurance different from a standard homeowners policy?

A homeowners policy is designed to protect a finished, occupied home. It typically excludes coverage for structures under active construction. Builders risk fills that gap, covering the building while it’s being built or renovated. Once construction is complete and the certificate of occupancy is issued, builders risk coverage ends and you transition to a standard homeowners policy. If you’re doing a major renovation on a home you already own, talk to us about whether your existing homeowners policy needs to be supplemented.

Ready to Protect Your Construction Project?

Contact Bosworth & Associates today, your independent insurance company for a custom quote on Builders Risk Insurance that’s built for your success.