The Real Cost of Skipping Builder’s Risk Insurance

When it comes to protecting your homes under construction, Builder’s Risk Insurance isn’t expensive—but skipping it can be. A typical policy might cost $400 to insure a $400,000 home. But if fire, theft, or storm damage strikes, an uninsured or underinsured builder could lose $100,000 or more in profit overnight.

That’s the hidden math behind the true cost of Builder’s Risk Insurance. The premium is small. The downside risk is massive.

Why the Cost of Builder’s Risk Insurance Is Worth It

Builder’s Risk policies are designed to cover the real risks every project faces before the closing table:

• Fire that damages framing and materials
• Theft of tools or appliances from the site
• Storm damage that requires expensive repairs
• Vandalism that delays delivery to buyers

Without coverage, every dollar of loss comes straight out of your margin. For builders working on thin timelines and tight budgets, that can be devastating..

Common Builder's Risk Insurance Mistakes

Even builders who carry insurance sometimes make mistakes that leave them exposed. The most frequent Builder’s Risk coverage mistakes we see include:

• Reporting only material costs instead of the full project value
• Setting deductibles higher than they can realistically afford
• Insuring some—but not all—active homes
• Extending a 12-month policy instead of starting with an 18-month policy

Each mistake can turn into a coverage gap, leaving projects exposed when builders think they’re protected.

Underinsuring Construction Projects: A Costly Gamble

One of the most common missteps is underinsuring construction projects. Builders sometimes insure only part of their pipeline or underestimate replacement value to keep premiums lower.

The problem? Losses rarely occur on “the covered homes.” They strike where coverage is missing. And when that happens, the financial setback can wipe out profits for the year.

Choosing the Best Builder’s Risk Insurance Company

Not all insurance carriers are created equal. Some of the big-name carriers lack true construction claims experience, exclude common risks, or don’t offer refunds for early project completion.

Maverick takes a different approach:

• A+ rated construction carriers only
• Policies vetted for real-world use, not just boilerplate coverage
• Claims expertise that understands how builders actually work

That’s why many home builders consider Maverick the best Builder’s Risk Insurance company to protect their projects.

Why Every Home Needs Its Own Builder's Risk Policy

Builder’s Risk is written per home. Covering only some of your projects creates dangerous blind spots. And when losses occur, it’s usually the uncovered homes that come back to bite.Every home deserves its own policy. Anything less is leaving your business exposed.

Max Protection: Combining Builder’s Risk, General Liability, and Warranty

No single policy can cover every risk. That’s why the strongest builders combine:

• Builder’s Risk Insurance – covers homes during construction
• General Liability Insurance – protects against third-party claims and accidents
• Structural Warranty – extends protection years beyond closing

Together, these coverages create unified risk protection, better claims coordination, and peace of mind that extends from the foundation pour through the warranty period.

How Maverick Helps Builders with Builder's Risk Insurance

We know builders aren’t behind a desk all day. That’s why we built our process to meet you where you are. With Maverick, you can:

• Get multiple quotes from top carriers instantly—with one application
• Quote, bind, pay, and sign your policy in less than five minutes
• Receive proof of insurance on the spot
• Manage coverage from your desktop or mobile device through our platform

No delays. No back-and-forth. Just fast, builder-specific coverage when you need it.

Final Word

The cost of Builder’s Risk Insurance is minimal compared to the losses builders face when they skip it or set up policies incorrectly. By avoiding coverage mistakes, insuring every home, and choosing the best Builder’s Risk partner, builders protect their profits, their timelines, and their reputation.

Don't wait until something goes wrong. Protect your builds the Maverick way. Contact us to start quoting Builder's Risk insurance today

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