Builders Risk Gap Calculator

Builders risk often misses soft costs and delay. This calculator sizes the gap.

Hard cost covered

Soft costs

Rebuild months

Monthly pro forma rent

Soft cost sub-limit

Coverage gap

$4,550,000

Soft cost gap

$2,300,000

Rent loss

$2,250,000

How the math works

Soft cost gap = soft cost − sub-limit. Rent loss = monthly × rebuild months. Gap = soft gap + rent loss.

Builders risk with delay-in-opening coverage runs 15-25% higher premium than vanilla hard-cost-only policies. On a $25M project, that's $10-25k of annual premium — trivial against the downside of a 10-month rebuild that costs $2M+ in lost rent.

How to Use

Enter project hard cost covered.
Enter soft costs (permits, design, legal).
Enter projected rebuild months.
Enter delayed opening rent loss.
Enter policy sub-limit on soft costs/DIC.
Read coverage gap.

Frequently Asked Questions

Common gaps?

Soft costs (design, permits, legal): often sub-limited at 10-25% of hard costs. Delay in opening: sub-limit 6-12 months lost rent. Interest carry: often not covered without specific endorsement. Pollution: major gap typically.

Policy coverage?

Standard builders risk: hard construction costs + materials on site. Enhanced: add soft costs, delay in opening, extra expense. Always request delay in opening / lost rent rider for any rental-producing asset.

Limits setting?

Hard cost limit = contract value × 1.10 (account for change orders). Soft cost: 20-30% of hard cost. Delay: 12 months at full pro forma rent. Review at major schedule or budget changes.