Builder’s Risk Insurance in Texas
What is Builder’s Risk Insurance?
Builder’s risk insurance—also called course of construction insurance—is a specialized policy designed to protect buildings while they’re under construction or major renovation. It covers damage to the structure itself, as well as building materials and fixtures, against perils like fire, theft, vandalism, and storm damage.
Who Needs Builder’s Risk Coverage?
This policy is essential for anyone with a financial stake in a project. General contractors, real estate developers, house flippers, property owners, and even investors often carry builder’s risk. In many contracts, the responsibility to hold the policy falls to the general contractor, but sometimes the property owner secures it instead.
Coverage Details: What’s Included (and Not)
Builder’s risk covers:
- The structure under construction
- Materials on-site (sometimes even in transit or stored offsite if endorsed)
- Equipment that will become part of the building, such as HVAC units
Common perils covered include fire, lightning, hail, theft, and vandalism. What it doesn’t cover: tools or contractor equipment (that requires inland marine coverage), injuries on site (that’s workers’ comp), or liability claims (that’s general liability). Coverage also ends once construction is finished or the building is occupied.
Texas Considerations & Requirements
In Central Texas, builder’s risk policies often include coverage for hail and wind damage, which is critical given local storm risks. Lenders almost always require proof of builder’s risk before funding construction loans, listing themselves as a loss payee. Ironwood Insurance can structure coverage that satisfies lender requirements while keeping your project fully protected.
How Ironwood Supports Your Project
Ironwood works with contractors and investors across Central Texas, from Waco to Temple, to tailor policies to each project. We calculate the right coverage amount (the project’s completed value), ensure terms align with your build timeline, and issue certificates quickly for lenders and owners.
Secure Your Build – Get a Quote
Don’t let one storm or theft delay your project or sink your investment. Ironwood makes it easy to get a builder’s risk policy built around your project.
Frequently Asked Questions About Builder’s Risk Insurance in Texas
Do I need builder’s risk insurance if I already have property insurance?
Yes. Property insurance doesn’t usually cover buildings under construction. Builder’s risk is designed specifically for projects still being built.
Who is responsible for buying builder’s risk insurance – the owner or the contractor?
It depends on the contract. Sometimes the property owner secures it, other times the general contractor is required to carry it.
How long does builder’s risk coverage last?
Most policies run for 6 or 12 months and can be extended if construction takes longer.
Does builder’s risk insurance cover liability claims?
No. Builder’s risk covers the project itself. Liability claims require a general liability policy.