Is Builders Risk Insurance Priced as a Percentage of Project Cost?

No universal percentage sets builders risk premiums; project value and included costs affect each insurer’s quote.

No universal percentage sets builders risk premiums. Project value can be one input—US Assure’s program counts labor, materials, design costs, overhead, and profit when included—but your insurer’s quote determines the rate and premium. Ask what value the quote uses before comparing prices.

Project location, construction details, term, selected limits, deductible, and optional coverage can also affect the proposal. The percentage shown in an online article or calculator may use a different project type, geography, or coverage basis than yours. Without those assumptions, it cannot establish what an insurer will charge.

Ask the carrier or broker to state the premium, what project value it uses, and which fees or taxes are additional. Compare that basis and coverage terms across quotes. If costs change during construction, ask how the revised completed value should be reported and whether it affects premium or limits.

Sources

2 documents, numbered as cited.

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