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Builders Risk Coverage Calculator

Builder's risk covers construction in progress until certificate of occupancy.

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$
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Total premium

$360,000

Monthly premium

$15,000

Total insured value

$40,000,000

How the math works

Total insured = construction + soft cost. Premium = insured × rate/100 × months/12.

$35M + $5M = $40M × 0.45% × 24/12 = $360k total premium for builder's risk.

How to Use

  1. Enter total construction value.
  2. Enter project duration months.
  3. Enter rate per $100.
  4. Enter soft cost coverage.
  5. Read total premium.

Frequently Asked Questions

Coverage scope?

Named peril or all-risk. Covers building/structure being built, materials on-site, temporary structures. Usually includes soft costs (extra expense, loss of rent, etc.). Premium applies to total insurable value.

Rate structure?

Range: $0.20-1.20 per $100 of construction value. Factors: building type (wood frame higher than concrete), geography (wind zones), duration, risk controls (security, fire protection), contractor quality.

Common exclusions?

Design defect. Workmanship defect. Earthquake/flood (separate peril). Machinery breakdown. Testing/commissioning. Each can be endorsed on. Review exclusions carefully before binding.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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