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Builders Risk in Kentucky

Kentucky requires a state floodplain permit before covered floodplain construction, demolition or renovation, and NFIP communities may impose separate and stricter local requirements. The available general permits have defined limits; new structures or projects that could change the base flood elevation need individual review.

What Is Builders Risk Insurance?

Builders risk protects the project you are building, including materials meant for it, against physical loss until construction ends. The gaps that cost owners money are materials in storage or transit, the existing building in a renovation, and coverage ending when you occupy early. Read the national Builders risk guide.

What Should You Watch for With Builders Risk Insurance in Kentucky?

  • Get both state and local answers before starting

    Kentucky's Energy and Environment Cabinet says floodplain construction requires a state permit before work and that many NFIP communities issue their own local permit, potentially under stricter standards. Ask the state and local coordinators about the same site plan, including temporary construction activities. 1

  • Check whether the project fits a general permit

    Kentucky identifies general permits for eligible low-impact work and nonsubstantial improvements below 50% of structure value including labor. The Cabinet says general permits do not cover new structures or protected waters; work that may change the base flood elevation or is otherwise ineligible requires an individual permit. 1,2

  • Resolve floodway engineering before mobilization

    Kentucky's flood hazard guidance describes individual review where a project may affect base flood elevation and points to engineering/no-impact documentation for regulatory floodways. Have the project engineer confirm the applicable floodway analysis and local permit milestones before scheduling crews and deliveries. 2

Which Providers Have Documented Kentucky Licenses?

No provider in our research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Who Regulates Insurance in Kentucky?

Kentucky Department of Insurance

The Kentucky Department of Insurance licenses agents and insurers, monitors the insurance market, and accepts complaints about insurance companies and agents. You can use its state lookup or complaint service to check a license or raise an insurance issue. 3,4,5

Surplus-Lines Tax and Stamping Office in Kentucky

Reported tax rate. 3% on Kentucky-home-state premiums and other premium consideration; separate 1.8% surcharge on eligible risks located in Kentucky, subject to statutory exceptions; applicable local-government premium tax may also apply 6,9,7,8,10

When Kentucky is the insured's home state, the state tax is 3% of premium and other consideration treated as premium; local-government premium taxes may also apply. A separate 1.8% surcharge generally applies to Kentucky risks, but state law exempts multistate nonadmitted risks and specified government and nonprofit premiums. The broker must make a diligent effort to place coverage with an admitted carrier before using surplus lines.

What Should You Ask Before Buying Builders Risk Insurance in Kentucky?

  1. Does the state classify this as floodplain development, a nonsubstantial improvement or another activity, and what state and local permits are required?
  2. Does the project qualify for a general permit, or do a new structure, protected water or potential base-flood-elevation change require individual review?
  3. How does the builders-risk form address the identified flood exposure, temporary works and any schedule delay caused by flooding or required work stoppages?

Builders Risk Insurance in Kentucky: Frequently Asked Questions

Does a Kentucky state floodplain permit replace local review?

No. The Cabinet says NFIP communities issue separate local floodplain permits and may adopt stricter standards than the state minimum. 1

Can a new Kentucky building use a floodplain general permit?

The Cabinet says its general permits do not cover new structures; an individual permit is required when the project is not eligible or could change base flood elevation. 1,2

Sources for Builders Risk Insurance in Kentucky

  1. Environmental Permitting in Kentucky. Kentucky Energy and Environment Cabinet; Floodplain construction permit, general/individual permit limits and local review; lines 650–671. Accessed 2026-09-28.
  2. Understand Your Flood Hazards. Kentucky Energy and Environment Cabinet; State floodplain development permit types, thresholds and floodway review; lines 379–392. Accessed 2026-09-28.
  3. Kentucky Department of Insurance. Kentucky Department of Insurance; Homepage and consumer telephone. Accessed 2026-09-28.
  4. Insurance License Lookup. Kentucky Department of Insurance; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Kentucky Department of Insurance; Official DOI consumer complaint page accepts complaints involving general liability and disputes with insurers, agents or adjusters. Accessed 2026-09-28.
  6. KRS 304.10-180. Kentucky General Assembly; KRS 304.10-180(1): Kentucky-home-state; 3% applies to premiums, assessments, fees, charges or other premium consideration; local premium tax is separate. Accessed 2026-09-28.
  7. Local Government Premium Taxes. Kentucky Department of Insurance; Current local tax schedules. Accessed 2026-09-28.
  8. KRS 304.10-090. Kentucky General Assembly; KRS 304.10-090 requires policy notice that nonadmitted insurer is not a Kentucky Insurance Guaranty Association member and its benefits are unavailable upon insolvency. Accessed 2026-09-28.
  9. KRS 136.392. Kentucky General Assembly; KRS 136.392(1),(5)-(6): $1.80 per $100 on premium/other charges for Kentucky risks; named government/nonprofit exceptions; multistate nonadmitted risks exempt. Accessed 2026-09-28.
  10. Surplus Lines. Kentucky Department of Insurance; Full page states licensed surplus-lines brokers must make a diligent effort to place with an admitted carrier before exporting coverage. Accessed 2026-09-28.
  11. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  12. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  13. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  14. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  15. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  16. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  17. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, email The General Average with a supporting source.

Builders Risk Insurance Guides for Other States

Other coverage in KentuckyEvery coverage guide for Kentucky, plus the regulator and surplus-lines details.

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