Builders risk insurance typically costs between 0.1% and 4% of total project value, with most residential projects landing between $400 and $3,000 for a 6 to 12 month term. The competitive admitted markets price new construction around $1.00 to $2.00 per $1,000 of project value. Renovations on older structures price higher, often $3.50 to $5.50 per $1,000.
Three things drive most of the price swing on any project:
- New construction or renovation
- Project size, and whether the carrier minimum kicks in
- For renovations, the year the existing structure was built
The table below shows the market range we typically see on five common project profiles. These are real shopped quotes across the carrier panel BuildersRiskNerd works with, not list prices.
Sample builders risk premiums by project profile
| Project profile | Project value | Term | Typical market range |
| New home, Texas, frame | $300,000 | 9 months | $600 – $2,400 |
| Kitchen remodel, California | $150,000 | 6 months | $425 – $900 |
| Custom home, Florida coastal | $1,200,000 | 12 months | $8,000 – $18,000 |
| Detached ADU, Colorado | $80,000 | 6 months | $425 – $700 |
| Commercial mixed-use, Massachusetts | $2,500,000 | 18 months | $7,000 – $25,000 |
The wide ranges come from carrier spread. When two carriers quote the same risk on this book, the second-place quote averages roughly 2× the first-place quote. That’s the cost of shopping one carrier. Shop three.
Builders risk cost tool
Builders Risk Insurance Cost Calculator
Estimate the base premium for a 2026 builders risk policy using project value, term, structure age, construction class, state, weather exposure, and deductible.
What actually drives builders risk pricing
Seven things move the premium more than anything else. We're listing them in the order of weight they carry in real underwriting decisions on our book.
1. New construction vs. renovation
This is the biggest single driver. A renovation introduces three risks that new construction skips. The existing structure's electrical, plumbing, and roof can fail during work. Materials and finishes already in place can be damaged. Older code conditions sit between the carrier and a clean claim if something goes wrong.
Carriers price all three. On the most competitive admitted carrier in our panel, renovations cost roughly 1.6× more than new construction for projects of comparable value. On a secondary admitted carrier, that climbs to 2.6×.
The dollar gap understates the access gap. The secondary carrier in our sample quoted 81% of new construction submissions and 0% of structural renovations. Renovating means a smaller pool of carriers will quote at all, which by itself pushes price up. (new construction coverage details; renovation pricing breakdown.)
2. Project value (and the $425 minimum)
Higher project value means a higher dollar premium. Lower rate as a percentage. A $14M new build on our book quoted at roughly $1.00 per $1,000 of project value. A $200K project quoted at $3.50 per $1,000. Same math as every other line of insurance. Bigger projects pay a smaller percentage rate.
The wrinkle: below ~$300,000 of project value, the curve is flat. Most competitive admitted carriers floor at roughly $425. In our book, a $150K new build, a $160K renovation, a $185K new build, and a $260K new build all priced at exactly $425. The dollar gap between a $150K project and a $250K project is often $0.
If your project is small, expect the minimum to apply. The minimum is the minimum.
3. Age of the existing structure (renovations only)
For renovations, the year the existing structure was built is the strongest single predictor of price. Pre-1980 structures cluster between $3.50 and $5.50 per $1,000 of project value. Post-1980 structures drop to $2.00 to $2.50, overlapping with new-construction territory.
Renovating a 1947 farmhouse in Georgia is a different rating exercise than renovating a 2007 production home in California. The carrier asks about the year of major systems for a reason. Federal Pacific or Stab-Lok panels, knob-and-tube wiring, polybutylene plumbing, roofs over 20 years old, and unreinforced foundations are all known carrier red flags. They all show up in pricing.
Shopping a pre-1980 renovation? Plan on the higher end of the rate range. Bring system-replacement context to the submission. A re-pipe and panel swap completed before the renovation drops the project into a much better pricing slot, and BuildersRiskNerd will tell carriers about it on the application if you mention it.
4. Construction class (frame vs. masonry vs. mixed)
Frame costs roughly 30% more to insure than masonry. Mixed prices in between. Carriers borrow this from the ISO commercial property forms for the obvious reason. Frame burns. Masonry doesn't.
For most residential builds, the choice is already made. The architect specified the wall system before you got the file. On commercial mixed-use or hybrid residential, the wall system is still negotiable. Picking masonry where it makes structural sense pulls real dollars out of the premium. The construction-class loading factors come from the IBHS construction loss data for anyone who wants to see the underlying math.
5. Location and weather risk
State and ZIP move the rate more than most contractors expect. Coastal Florida and coastal Louisiana price higher because hurricanes are a known carrier exposure. ZIPs near the wildfire line in California price higher because of fire risk. Hail-corridor states across the central plains price higher in the spring policy renewals.
In our book, projects in Louisiana averaged $2.50 per $1,000 of project value. Smaller Georgia projects clustered at the high end of $5.50 per $1,000. Mid-size Texas projects averaged $2.50 per $1,000. Projects in California, Washington, and North Carolina ran $1.00 to $1.50 per $1,000.
For coastal projects, the wind/hail deductible is a real pricing lever. A 5% wind/hail deductible drops the premium 15% to 25% versus the carrier default. A 10% deductible drops it more. The savings have to be worth the worst-case math. The deductible applies as a percentage of the policy limit, not a flat dollar amount. Working in Texas builders risk overview, Florida builders risk overview, California builders risk overview, or Massachusetts builders risk overview? Each of those state pages walks through carrier appetite, named-storm rules, and wildfire deductibles at the ZIP level.
6. Term length
Builders risk policies are short by design. Most run 6 to 12 months. The shorter the term, the lower the dollar premium, but the rate per month scales differently than you'd expect, because the carrier has fixed acquisition cost on every policy.
A 6-month term costs about 60% to 65% of the 12-month premium, not half. The carrier still has to underwrite, issue, and service the policy.
Match the term to the actual build duration plus a small buffer. Quoting a 12-month policy on a 6-month build pays for coverage you don't need. Quoting a 6-month policy on a build that runs 9 months means an extension at the back end, and extensions price at the carrier's rate at extension time, not at the original rate.
7. The deductibles you pick
The customer picks the all-other-perils (AOP) deductible. Typical options are $1,000, $2,500, $5,000, $10,000, or $25,000. Higher deductibles cut the premium meaningfully. Going from $1,000 to $5,000 saves 8% to 12%. Going to $10,000 saves another 5% to 7%.
Wind/hail and named-storm deductibles, where they apply, are usually a percentage of the policy limit (1%, 2%, 5%, or 10%) rather than a flat dollar amount. On a $500K policy, a 5% wind deductible is $25,000 out of pocket per wind claim. The premium savings have to be worth that worst-case math.
Financing the project? The lender often dictates the maximum deductible. Check the loan agreement before you elect a high deductible to stay in compliance with the lender's insurance requirements.
Other things that move the premium
Four smaller drivers don't make the top seven but still show up in pricing:
Named insured structure. Homeowner-named, GC-named, and lender-named policies price differently. Homeowner-named policies on owner-builder projects are sometimes harder to place and price higher because carriers see more frequency on those. (homeowner builders risk pricing is its own conversation.)
Prior losses. Two builders risk losses in the last five years can move a project from standard markets to E&S markets, with a 30% to 80% premium increase. One loss usually stays in standard markets but adds 10% to 20%.
Builder experience. Most carriers ask years-of-experience as a knockout (do you have any?) more than a continuous rate adjustment. A zero-experience owner-builder gets fewer carrier options. A 20-year veteran GC gets the standard rate, not a discount for the experience alone.
Vacancy. Most builders risk policies require the property to be vacant during construction. Renovations where the homeowner stays in place are harder to place and often need a UW conversation rather than an instant quote.
How to lower your builders risk premium
If you've already received a quote and the number runs high, four levers usually move the price meaningfully:
Raise the deductible. Going from $1,000 to $5,000 saves 8% to 12%. On a $1,500 premium, that's $120 to $180 in your pocket. As long as you can absorb the higher deductible at claim time, this is the cleanest lever you have.
Match the term to the actual build. Don't quote a 12-month policy on a 6-month build. Quote 7 months for a 6-month build. One month of buffer is enough. If the project runs long, extensions are usually available, and you'll have only paid for what you needed up front.
Bundle with general liability through the same broker. Carriers often credit the builders risk premium when the same broker handles the GL, especially for GCs running multiple projects in a year. The credit is usually 5% to 10% on builders risk and sometimes a small credit on the GL renewal. BuildersRiskNerd shops both lines through the same submission.
Lock the site down before binding. Fence the site. Install a temporary alarm or camera. Use lockable storage for materials. Several carriers credit job-site protection on the application. The credit is small per policy but adds up across a year of builds, especially for GCs running multiple builders risk policies a year.
Pick masonry where it fits. This applies only when the wall system is still up for grabs. Most residential projects have it locked in. On commercial mixed-use or hybrid builds, picking masonry on the segments where it makes structural sense pulls 10% to 25% off the construction-class loading. (what your premium pays for)
What's not in the calculator (surcharges and fees)
The calculator estimates the base premium. A few line items show up on the binding invoice that aren't in the base rate, especially for non-admitted (E&S) placements.
Surplus lines tax. Non-admitted states add surplus lines tax to the premium. Rates vary, typically 3% to 6%. On a $2,000 premium that's $60 to $120 added at bind.
Policy fee. Many carriers charge a policy fee of $50 to $250, separate from the premium. This is the carrier's administrative fee for issuing the policy.
Stamping fee. A few states (CA, FL, others) charge a stamping fee on surplus lines policies, usually 0.18% to 0.25% of premium. Small, but it lands on the invoice.
Mid-term endorsement fees. Adding a named insured, increasing the limit, or extending the term mid-policy usually triggers a $25 to $100 endorsement fee plus any additional premium for the change itself. (endorsements that change premium)
Extension premium. If the project runs long and you need to extend, the carrier prices the extension at the rate available at extension time, not at the original rate. The pro-rate is usually fair, but the per-month rate can run higher than the original policy if the market has tightened in the interim.
For projects in admitted-only states with admitted carriers, most of these go away. For coastal Florida, wildfire California, or any project that lands in the E&S market, plan on roughly 5% to 10% on top of the base premium for taxes and fees.
Frequently asked questions
How much is builders risk insurance per month?
For most residential projects, builders risk costs $50 to $300 per month, depending on project value, location, and whether it's new construction or renovation. A $300K Texas new build on a 9-month policy averages around $130 per month. A $150K California kitchen remodel on a 6-month policy averages around $80 per month. Larger commercial projects can run $500 to $2,000 per month.
What is the average cost of builders risk insurance?
The average premium across our book is roughly $1.00 to $2.00 per $1,000 of project value for new construction and $3.50 to $5.50 per $1,000 for renovations. On a $500K new build, that's about $500 to $1,000 for the policy term. On a $300K renovation, it's about $1,000 to $1,700. Industry-wide averages cited by the III and NAIC commercial lines data tend to run higher because they include all carriers and all project types.
Is builders risk insurance based on project value or completed value?
Builders risk is rated on the completed value of the structure, meaning the total project value including labor and materials at completion, not the in-progress value as work proceeds. The policy limit should equal completed value. Underinsurance is the most common mistake we see on small projects, and lenders catch it before close.
Why is renovation builders risk more expensive than new construction?
Renovations introduce three risks that new construction skips: damage to the existing structure (already in place and exposed), damage to materials and finishes already installed, and older building systems that may fail during work. Carriers price all three, which adds roughly 60% to the rate on the most competitive admitted carrier and more on secondary carriers.
Does the cost go up if I have a high-value project?
Yes in dollars, no in percentage rate. Higher project value means a higher dollar premium but a lower rate per $1,000 of project value. A $14M project might price at $1.00 per $1,000 ($14,000 premium for the term). A $200K project might price at $3.50 per $1,000, or the $425 carrier minimum, whichever is higher. Larger projects pay a smaller percentage rate.
Can I get builders risk insurance for less than $425?
In most cases, no. Competitive admitted carriers floor at roughly $425 for a basic builders risk policy, and that floor applies across the board. A $50K shed renovation and a $250K small home renovation often quote at the same $425 minimum. Some surplus lines carriers go lower, but only on very specific risks the standard markets won't touch.
Get a real quote on your project
The calculator gives you a working estimate. The bound premium reflects underwriting factors the calculator can't see: the actual builder's experience and license status, prior loss history, specific carrier appetite for the project profile, and any endorsements the lender or contract requires.
Hit the quote page and tell us about the project. BuildersRiskNerd shops it to admitted and non-admitted carriers that match the risk profile and brings the options back, usually the same business day for projects under $1M. No commitment to bind. Compare the options. Pick the one that fits.
BuildersRiskNerd is a brand of ContractorNerd Insurance Services, LLC, a licensed insurance producer (CA License #6015566). All insurance products and services are offered through ContractorNerd Insurance Services, LLC. We're a broker, not an insurer. Policies are underwritten by admitted and non-admitted carriers. Premium estimates on this page are approximations based on aggregated submissions and carrier filings. Actual bound premium will depend on the specific underwriting factors of your project and the carrier's rate at submission time.