Builder’s Risk Insurance: When to Activate It and Why It Matters

For many homebuilders, Builder’s Risk Insurance feels like just another box to check. But in reality, it’s one of the most misunderstood—and underutilized—tools for protecting profit on every project.

Delays, damage, and accidents aren’t “what ifs” in construction. They’re everyday risks. Without the right coverage, those risks eat into your margins long before a buyer ever walks through the front door.

What Is Builder’s Risk Insurance?

Builder’s Risk Insurance is the only policy that protects the structure itself while it’s under construction. It covers losses from:

• Fire
• Severe weather
• Theft
• Vandalism

Unlike General Liability—which protects against third-party injuries or property damage—Builder’s Risk protects the actual home you’re building. From the day you pour the foundation until closing, it’s the safeguard that keeps your investment secure.

When Should You Activate a Builder's Risk Insurance Policy?

The short answer: before the slab is poured.

Many builders wait until framing starts or until their lender demands proof of coverage. By that point, most carriers either:

• Refuse to quote the project, or
• Quote it at 2–3x the normal cost

The smartest time to bind coverage is a week or two before the foundation goes in. That’s when you’ll get the best pricing and avoid last-minute surprises.

What Happens If You Wait Too Long to Get Builder's Risk Insurance?

We’ve seen builders try to activate coverage when a home is 60% complete. Here’s what happens:

• Carriers reject the project outright
• Or they restrict coverage and charge premiums so high they crush margins
• Once siding or roofing is installed, 90% of carriers say no altogether

Waiting too long isn’t just risky—it’s often a dealbreaker.

Why You Need More Than Just Builder’s Risk

Even the best Builder’s Risk policy isn’t enough on its own. That’s why builders combine it with:

• General Liability Insurance – Protects against third-party claims (like jobsite accidents or damage to neighboring property). When bundled with Builder’s Risk, you:
  • Align coverage for both structure and liability
  • Simplify audits
  • Reduce coverage gaps
• Structural Warranty – Kicks in after the build is complete, extending protection long after closing. Together with Builder’s Risk, it creates a full lifecycle strategy—covering you from the slab pour through years of homeownership.

What Smart Builder’s Risk Coverage Looks Like

The strongest builders make sure their Builder’s Risk coverage is set up right. That means:

• Per-home policies (not just a project umbrella)
• 18-month terms with refund options for early completion
• Activated early, before concrete is poured
• Construction-specific carriers, not just generalist insurers

Anything less leaves room for costly mistakes.

How Maverick Helps Builders with Builder's Risk Insurance

At Maverick, we know builders aren’t behind a desk all day. That’s why our process is built to work where you do—whether that’s the office, the jobsite, or on the go.

In less than five minutes, you can:

• Get multiple quotes from top-rated carriers with one application
• Quote, bind, pay, and sign policies instantly
• Receive proof of insurance on the spot
• Manage coverage from your desktop or mobile device through our platform

No phone calls. No waiting. No delays that put your projects at risk.

Final Word

The best time to secure Builder’s Risk Insurance is before you build—not after. Activating coverage early, bundling it with General Liability and Warranty, and partnering with the right carrier gives you complete protection from foundation to closing and beyond.

With Maverick, you get coverage designed for how builders actually work—fast, flexible, and backed by 35+ years of expertise.

Contact us to start quoting Builder's Risk insurance today

When You Should Buy Builder's Risk Insurance

Don't Wait to Buy Builder's Risk: Get Coverage Before You Pour the Slab

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