What Affects Builders Risk Insurance Cost for a New Home?
Know which costs make up the insured project value before comparing new-home builders risk premiums.
A new-home builders risk quote depends on more than the sale price: insurers consider the project’s completed value and construction details, and US Assure’s guide includes labor, materials, design, overhead, and profit in its program’s value calculation. Give each insurer the same project figures so you can compare equivalent limits and coverage.
The location, construction details, work stage, time to completion, and requested options also belong in the submission. The CDI guide explains that property terms and endorsements affect coverage, while a specimen ISO form caps payment at the applicable limit shown in the declarations. A low premium can reflect a lower limit or narrower terms.
Give each insurer consistent project information and compare the same completion-value basis, covered property, deductible, and optional protections. Check whether the quote includes materials in transit or storage and when the builders risk term ends relative to occupancy and homeowners coverage.
Related Coverage
Sources
- Commercial Insurance Guide. California Department of Insurance; Form 700, revised June 14, 2024: Commercial Property > Coverage Forms and Endorsements > Builder’s Risk; Inland Marine; How Can I Purchase Commercial Insurance?; What Should I Expect from a Broker-Agent? Accessed 2026-09-25.
- Builders Risk Coverage Form. Insurance Services Office, Inc.; hosted by Touchpoint Markets; IH 00 70 05 17, copyright 2017 (illustrative specimen): A.1–3, printed pp. 1–2; B, printed pp. 9–11; C–E, printed p. 12. Accessed 2026-09-25.
- Builders Risk Application Tip Sheet. US Assure; General policy application tips, p. 1; Remodeling policy application tips, p. 2. Accessed 2026-09-25.
