Builders Risk Insurance Maryland

Protect Key Assets While Your Construction Project Is Ongoing

A Sensible Way To Cover Equipment, Materials, and the Structure Itself

Call Insurance Brokers of Maryland To Discuss a Builders Risk Insurance Policy

Long before anyone moves in, a construction project puts a significant financial investment on the line. Builder’s risk insurance protects that investment while a structure is being built or renovated, covering the building, the materials, and the equipment on your job site from the day the work starts until completion or occupation – whether that’s three weeks, three months, or three years.

At Insurance Brokers of Maryland, our independent insurance agency helps property owners, contractors, and developers across Frederick MD and the entire state secure the right builders risk (or builder’s risk) insurance for every construction project.

What Does Builder’s Risk Insurance Cover?

Basically, Anything To Do With the Construction – During the Construction

Builder’s risk insurance is a specialized property insurance policy that covers a structure while it’s under construction. Sometimes called course of construction insurance, this coverage protects the physical building along with the building materials, temporary structures, scaffolding, and installed fixtures at the construction site. A typical builder’s risk insurance policy also covers direct physical loss from fire, lightning, wind, hail, theft, and vandalism, and it covers materials both on-site at, and in-transit to, the project.

The right coverage options depend on the type of work. A new construction, a renovation, and a remodeling project each carry different risks, and a policy can be written for residential or commercial work. Many policies can also include soft costs, which are the added expenses such as loan interest, extra permit fees, and lost rental income that pile up when construction delays push back your project timeline after a covered loss. Debris removal is another common feature – paying to clear a damaged structure so repairs can begin.

Who Needs a Builders Risk Policy in Maryland?

If You Have a Financial Interest in a Construction Project, You Should Get Builders Risk Insurance

Anyone with a financial interest in a project under construction should carry a builders risk policy. Property owners typically need this insurance to protect their financial investments, and a general contractor often carries the policy on behalf of the whole team. Developers with money committed to new construction rely on it as well, and subcontractors may be listed on the same builders risk policy.

Because lenders usually require proof of coverage before approving a construction loan, stakeholders often line up a builders risk policy as part of the planning stage. Maryland regulations may also require builders risk insurance on state-assisted projects, so it’s important to confirm the terms early.

What Does a Builders Risk Policy Not Cover?

Workers Comp and General Liability Are Covered by Other Insurance Products

It helps to know the standard exclusions before you start construction. Builders risk insurance does not cover worker injuries or general liability claims, which belong on separate policies. Natural-disaster events such as earthquakes and floods are common exclusions unless that protection is added as a rider.

Coverage also doesn’t extend to a contractor’s vehicle, personal tools, or the land itself. Coverage for the structure typically ends once the project reaches completion or occupancy, at which point a standard property insurance policy takes over.

What Does Builders Risk Insurance Typically Cost?

In Maryland, Builders Risk Insurance Policy Premiums Vary With the Carrier

Builders risk insurance costs run about 0.5% to 1% of the total project value, though the exact figure varies with project size, design, and location. A $500,000 project may cost roughly $2,500 to $5,000 to insure, depending on the carrier you choose. Policy limits must match the total completed value of the structure so the coverage keeps pace as the building takes shape. A detailed risk assessment helps our team match you with accurate quotes, since insurance policies can vary substantially among carriers. As independent brokers, the agents at Insurance Brokers of Maryland compare options from a variety of insurers to protect your project at a reasonable, affordable premium.

Consult With the Pros at Insurance Brokers of Maryland

Call or Message Our Team and Get the Protection You Need During Construction

For Maryland businesses in the construction industry, we build the right coverage around your project.

Our licensed insurance brokers work with builders, owners, and developers throughout Frederick, Emmitsburg, Towson, Hagerstown, the Eastern Shore, and in all the cities and counties across Maryland from Oakland to Ocean City. Because we’re an independent agency, we aren’t tied to one insurance provider, so we can refer your project to the carrier whose builders risk insurance policy fits your timeline and budget. We handle new construction, renovation, and remodeling work of every size, and we make sure the coverage is in place before the first load of materials arrives on-site.

Builders risk insurance is crucial for managing construction-related financial risks and keeping your project moving if a covered loss occurs. Getting started is simple. Speak with our team, share a few details about your construction project, and we’ll survey the insurance landscape and provide a variety of coverage options. You can request quotes online or by phone, and in most cases we can provide a quote the same day.

It’s smart – even necessary – to protect your next building project. Contact Insurance Brokers of Maryland to speak with a broker, submit your project information, and get builders risk insurance coverage in place with total peace of mind. Call 301-668-2233 or reach out through our online contact form to start the conversation today.

The Builders Risk Insurance Maryland Developers and Contractors Need. Call Insurance Brokers of Maryland