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Arizona Builders Risk Insurance

Arizona maps earth fissures in five counties and documents risks to buildings, foundations and infrastructure. For certain transfers outside subdivisions in unincorporated county areas, sellers must provide a statutory affidavit covering floodplain and fissure information. Check current parcel evidence, then ask the broker how the actual quote treats earth movement and resulting damage. 1,2,3,4

What Is Builders Risk?

Builders risk protects the project you are building, including materials meant for it, against physical loss until construction ends. The gaps that cost owners money are materials in storage or transit, the existing building in a renovation, and coverage ending when you occupy early. Read the national Builders risk guide.

What to Watch for in Arizona

  • Check the current fissure map for the site

    Arizona Geological Survey maps earth fissures in Cochise, La Paz, Maricopa, Pima and Pinal counties. Its overview map is dated 2015 and points readers to a current hazard viewer, so use the latest viewer and site-specific investigation rather than treating the older statewide illustration as clearance. A.R.S. § 33-422 applies to a seller of five or fewer parcels, other than subdivided land, in an unincorporated county area, and to any subsequent seller; the seller must provide an affidavit at least seven days before transfer. The affidavit includes floodplain and fissure information, but it is a transaction disclosure, not a professional site inspection. 1,2,3,4

  • Ask what the mapped feature status means

    AZGS says its mapping distinguishes continuous, discontinuous and reported-but-unconfirmed fissures. Ask the geotechnical professional to interpret the site and any nearby feature; a map label alone does not establish the condition of the insured property or whether a loss is covered. 2

  • Read earth-movement wording closely

    AZGS documents fissure exposure during construction and describes damage to roads, buildings, foundations and utilities. For a site with subsidence or fissure concerns, have the broker identify the quote’s earth-movement, subsidence and settling language, including any exclusions or sublimits, rather than relying on a general “builders risk” label. 2,1

Who Regulates Insurance in Arizona

Arizona Department of Insurance and Financial Institutions

Arizona DIFI regulates insurance companies and insurance professionals, including producers and surplus-lines brokers. Its license search covers both individual or business licensees and insurance companies, and its complaint page explains how to file with the Department. 5,6,7

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premium and taxable policy fees, less returns; stamping fee rate not verified When Arizona is the insured’s home state, the tax is 3% of gross premium and taxable policy fees, less returned premium; the statute excludes stamping fees from that tax base. For a multistate risk, Arizona’s share is allocated by exposure under the statute. Arizona's surplus-lines policy notice says these policies do not receive guaranty-fund protection. Current stamping-fee amount was not independently confirmed from readable current evidence and is omitted. 8,10,12,13

The Surplus Line Association of Arizona

  • Arizona has an exempt-commercial-purchaser search exception: A surplus-lines broker generally must make diligent effort to place an Arizona risk in the admitted market. For an exempt commercial purchaser, federal law removes that search only after the broker discloses the admitted-market protection difference and the purchaser then asks in writing for nonadmitted coverage. 9,11

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Arizona

  1. What current AZGS map and site investigation address fissures or subsidence at this parcel?
  2. How does the proposed form treat earth movement, subsidence, foundation damage and resulting physical loss?
  3. Which site preparation, excavation and foundation stages are included in the values and policy period?

Builders Risk in Arizona: FAQ

Which Arizona counties have mapped earth-fissure study areas? 1,2,3,4

AZGS lists Cochise, La Paz, Maricopa, Pima and Pinal counties and directs users to its current Natural Hazards in Arizona Viewer. For covered transfers of five or fewer parcels outside subdivisions in unincorporated county areas, A.R.S. § 33-422 requires a seller affidavit with floodplain and fissure disclosures. Confirm parcel conditions with current maps and qualified site investigation. 1,2,3,4

Does an AZGS fissure map establish whether a builders risk claim is covered? 2

No. The survey maps geologic features; it does not interpret a policy. Ask the broker or insurer to identify the applicable earth-movement and subsidence wording. 2

Builders Risk in Other States

Other Coverage in Arizona

Sources

  1. Earth Fissure Study Areas of Arizona. Arizona Geological Survey; Study-area map notes and recommendation to use current Natural Hazards in Arizona Viewer. Accessed 2026-09-28.
  2. Earth Fissures & Subsidence. Arizona Geological Survey; Mapping procedures, feature-status labels, glossary and construction/infrastructure examples. Accessed 2026-09-28.
  3. A.R.S. § 32-2117. Earth fissure maps; posting; immunity. Arizona State Legislature; Subsection A: posting of AZGS maps and notice that maps supplement, not replace, a professional property inspection. Accessed 2026-09-28.
  4. A.R.S. § 33-422. Land divisions; recording; disclosure affidavit. Arizona State Legislature; Subsections A and F(6)-(7): seller and parcel conditions, affidavit timing, and floodplain/fissure disclosure items. Accessed 2026-09-28.
  5. Arizona Department of Insurance and Financial Institutions. Arizona Department of Insurance and Financial Institutions; Official agency homepage. Accessed 2026-09-28.
  6. License Search. Arizona Department of Insurance and Financial Institutions; Search for individual or business licensees and insurance companies; insurer surplus-lines eligibility links. Accessed 2026-09-28.
  7. File a Complaint. Arizona Department of Insurance and Financial Institutions; Department complaint information and filing destinations. Accessed 2026-09-28.
  8. A.R.S. § 20-416: Tax on surplus lines. Arizona State Legislature; Subsection C sets the surplus-lines tax at 3% of gross premiums and requires the broker to collect it from the insured. Accessed 2026-09-28.
  9. Arizona House Bill 2111, Chapter 38. Arizona Legislature; Arizona House Bill 2111 (amending § 20-408) and current A.R.S. § 20-410 policy notice; see statutory notice. Accessed 2026-09-28.
  10. 15 U.S.C. § 8205: Streamlined application for commercial purchasers. U.S. House of Representatives, Office of the Law Revision Counsel; Broker's due-diligence search exception for an exempt commercial purchaser requires prior disclosure that admitted-market insurance may offer greater protection/regulatory oversight and the purchaser's subsequent written request for nonadmitted placement. Accessed 2026-09-28.
  11. A.R.S. § 20-410: Validity, disclosure, policy fees. Arizona State Legislature; Subsection B requires surplus-lines notices to state insureds/claimants are ineligible for Arizona guaranty-fund protection for both foreign and domestic surplus-lines insurers; subsection C says taxes under § 20-416 apply to broker service fees. Accessed 2026-09-28.
  12. 15 U.S.C. § 8202: Regulation of nonadmitted insurance by insured's home State. U.S. House of Representatives, Office of the Law Revision Counsel; § 8202(a): nonadmitted placement is subject solely to insured's home-State requirements, except as otherwise provided; § 8201 addresses exclusive home-State tax authority. Accessed 2026-09-28.
  13. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  14. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  15. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  16. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  17. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  18. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  19. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  20. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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