Custom and Spec Builders
Ground up homes and small commercial buildings, from slab to final inspection.
Builder's Risk Insurance in Texas
Coverage for a building while it goes up or gets renovated, including materials on site, written for the length of the project and the terms of your loan.
Who It's For
Owners Building or Remodeling
Property owners who hire a general contractor and want the project insured in their own name.
Remodelers and General Contractors
Contractors whose owner contracts make them responsible for insuring the work.
House Flippers
Investors renovating a home, often with a hard money or private lender.
What It Covers
The Structure Under Construction
The building and the work in place, insured for its completed value or the value of the renovation.
Materials and Supplies
Lumber, windows, cabinets and fixtures stored on site and, on many forms, in transit or at a temporary storage location.
Theft and Vandalism
Many forms cover stolen materials and vandalism, sometimes with security conditions such as fencing or locked storage.
Wind, Hail and Fire
Storm and fire damage during the build. Texas builder's risk policies often carry a separate wind and hail deductible.
Soft Costs
Optional coverage on some forms for extra interest, permit fees and other costs caused by a delay after a covered loss.
Temporary Structures
Scaffolding, construction forms and temporary fencing, where the form includes them.
Texas and San Antonio Details
Either the owner or the contractor can buy builder's risk, and the construction contract usually decides who does. Owner contracts and loan commitments often spell out who carries it, whose name goes on it and how the lender is listed. When each side assumes the other has it, a project can end up without coverage, so we start with the contract and the loan terms.
Spring hail and summer storms are a real risk to an open frame or a house waiting on its roof and windows. Many Texas policies set a separate wind and hail deductible, and some limit theft of appliances and fixtures until the building is enclosed and locked. Inside San Antonio city limits, new homes, additions and structural remodels need a Residential Building Contractor registered with the city's Development Services Department to pull the permit.
Builder's risk is written for a project term, often 3, 6 or 12 months. Coverage commonly ends at the first of several events: the term expires, the building is occupied or put to its intended use, or the owner accepts the work. If a buyer or tenant moves in early or the build runs long, call us before that date so the term can be extended or the property can move to a homeowners, landlord or vacant policy.
Common Questions
Who Pays for Builder's Risk, the Owner or the Contractor?
Either one can, and the construction contract usually decides. Lenders often want the owner named and the lender listed as mortgagee, so read the contract and loan terms together before you buy.
Does Builder's Risk Cover Theft of Materials?
Many forms cover theft of materials stored on site, subject to limits and security conditions. Some limit theft of appliances and fixtures until they are installed and the building is locked.
When Does Builder's Risk Coverage End?
Commonly when the building is occupied or put to use, when the owner accepts the work or when the policy term ends, whichever comes first. Move the property to a homeowners, landlord or vacant policy before that date.
Does Builder's Risk Cover Liability?
No. Builder's risk covers the property. Injury claims at the site fall under general liability, and the contractors on the job should carry their own.
Do I Need Builder's Risk for a Remodel?
Often. Many homeowners policies limit coverage when a home is vacant or under major renovation, and renovation lenders commonly require builder's risk. Tell us the scope and how long the home will be empty.
Related Coverage
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