Builder’s Risk Insurance Cost in Texas

Factors in Builder’s Risk Pricing

The price of builder’s risk insurance is tied directly to the project itself. Insurers consider:

  • Project Value – The higher the completed value, the higher the premium.
  • Type of Project – New construction carries different risks than remodels or renovations.
  • Construction Type – Wood-frame structures are more susceptible to fire and storm damage than steel or masonry.
  • Location & Weather Risks – Texas storms, hail, tornado activity, and even wildfire risk can raise premiums, especially in Central Texas and the Hill Country.
  • Policy Term – Shorter projects may qualify for 3–6 month terms, while longer builds require annual policies.
  • Coverage Extensions – Adding protection for things like theft, soft costs, or scaffolding raises the price but may be essential.

Typical Premium Range

Builder’s risk policies typically run 1–5% of the total project value.

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A $500,000 home build might carry premiums from $2,500 to $5,000 for a one-year policy.

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A $2 million commercial project could easily exceed $40,000–$60,000, depending on construction type and risk factors.

Ways to Manage Costs

Contractors and owners can reduce premiums by:



  • Securing the job site with fencing, lighting, or alarms.

  • Insuring only the completed value of the project.

  • Choosing the correct policy term based on actual build timelines.

Bundling builder’s risk with other policies, like general liability or commercial auto, for discounts.

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Don’t Skimp on Coverage

Trying to save by underinsuring is risky. A single storm, fire, or theft could wipe out materials and progress, leaving you financially exposed. A properly written builder’s risk policy makes sure the project can be completed even if disaster strikes.

Get an Accurate Quote

Every build is unique. Ironwood works with carriers experienced in Texas construction to deliver accurate pricing and practical coverage tailored to your project.

Frequently Asked Questions About Builder’s Risk Insurance Cost

  • How much does builder’s risk insurance usually cost in Texas?

    It often runs 1–5% of the total project value, but actual costs vary.

  • Why does construction type affect the premium?

    Wood-frame buildings are more vulnerable to fire and wind damage, so they cost more to insure.

  • Can I buy a shorter policy to save money?

    Yes. If your project is scheduled for 6 months, a 6-month policy may be cheaper than a 12-month one.

  • Does bundling builder’s risk with other policies lower the cost?

    Often yes—many insurers provide discounts for contractors carrying multiple policies with them.