Get Started

Delaware Builders Risk Insurance

Delaware DNREC’s flood tool helps developers and engineers assess a specific property but warns that it may miss small local-drainage flooding and that estimated flood heights have limitations. Share the map and site drainage records with the broker, then verify flood terms in the actual builders risk form. 1,2,3

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 Delaware

  • Treat the flood tool as a starting point

    DNREC says its map is for reference and may not identify every flood-prone location, especially small local drainage areas; advisory flood heights may also be inaccurate near structures. For a low-lying or drainage-sensitive site, request the Flood Insurance Study and a project-specific elevation or drainage review. 1

  • Do not substitute a flood map for written coverage

    Delaware’s Department of Insurance says standard business insurance policies do not protect against flood. That guidance does not decide what a builders risk form covers, so ask the broker to identify the policy’s flood, surface-water and sewer-backup language and any separate flood placement. 2

  • Check which flood-insurance law applies

    Delaware’s private primary flood-insurance statute defines that product as residential coverage, excluding commercial property. If you are arranging cover for a commercial construction project, do not assume the residential statute supplies builders risk terms; request the commercial policy and endorsements that would apply. 3

Who Regulates Insurance in Delaware

Delaware Department of Insurance

The Delaware Department of Insurance licenses and regulates insurers and insurance producers, reviews regulated insurance activity, and handles complaints. Its consumer division can help you raise an insurance concern and its services page links to official license searches. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premium, less return premium, when Delaware is the home state When Delaware is the insured’s home state, its 3% surplus-lines premium tax applies to the entire premium of a multistate policy, less returned premiums and excluding federal and state taxes and examination fees. Ask the surplus-lines broker to confirm the home-state determination and tax calculation, and separately explain how exposures are allocated in the required reports; those allocations do not reduce the premium subject to Delaware’s tax. 7,8

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 Delaware

  1. What does DNREC’s map show for this parcel, and could local drainage create additional flood exposure?
  2. Does the builders risk form include flood and surface water, and how does it treat sewer backup?
  3. Is any separate commercial flood policy needed, and how does it coordinate with builders risk?

Builders Risk in Delaware: FAQ

Does Delaware’s Flood Planning Tool identify every place that could flood? 1

No. DNREC says the tool may not show all areas subject to flooding, particularly smaller local drainage sources, and warns that advisory flood heights have limitations. Review the official Flood Insurance Study and site-specific information as needed. 1

Does Delaware’s private primary flood insurance law set commercial builders risk coverage? 3

The statute defines private primary flood insurance as residential property coverage other than commercial property. It does not establish terms for a commercial builders risk policy. 3

Builders Risk in Other States

Other Coverage in Delaware

Sources

  1. Delaware Flood Planning Tool. Delaware Department of Natural Resources and Environmental Control; Overview and disclaimer; local-drainage limitation, advisory flood height and recommended Flood Insurance Study. Accessed 2026-09-28.
  2. Flood Insurance. Delaware Department of Insurance; Flood insurance consumer guidance; statement about standard business insurance and flood. Accessed 2026-09-28.
  3. Title 18, Chapter 41, Subchapter V: Private Primary Residential Flood Insurance Model Act. Delaware General Assembly, Delaware Code Online; §§ 4152-4153; purpose and defined scope of residential flood coverage. Accessed 2026-09-28.
  4. Delaware Department of Insurance. Delaware Department of Insurance; Official Department homepage and regulatory resources. Accessed 2026-09-28.
  5. Services. Delaware Department of Insurance; Department service directory links to the state insurance licensee search. Accessed 2026-09-28.
  6. Consumer Services. Delaware Department of Insurance; Complaint filing and consumer assistance; publishes Consumer Services phone. Accessed 2026-09-28.
  7. Surplus Lines Bulletin 22. Delaware Department of Insurance; Surplus Lines Bulletin 22 (October 2025; printed day is blank), reproducing 18 Del. C. § 1925: home-state tax treatment, all premium on multistate policy if Delaware is home state, 3% rate, and exclusion of federal/state taxes and examination fees from gross premium. Accessed 2026-09-28.
  8. Delaware Code, Title 18, §§1923–1925. Delaware General Assembly; §1923(a)(1),(12) home-state verification and allocation records; §1924(b)(3)–(6) separate premium reporting; §1925(b)–(c) 3% tax, deductions/exclusions and full multistate premium when Delaware is home state. Accessed 2026-09-28.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. Licenses & Disclosures. RiskCube; Property & Casualty Producer/Broker Licenses; February 11, 2026 version. Accessed 2026-09-16.
  15. 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.
  16. 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.

Get Help With Insurance Buying and Renewals.

Get help buying coverage and managing renewals, with less paperwork for your team. Start with a free consultation.

Talk to Spot