Builders Risk Insurance Calculator

Builder's risk covers construction period losses.

Total project value

Construction months

Premium rate per $1000

Deductible

Total premium

$303,750

Monthly premium

$16,875

Premium net of deductible reserve

$253,750

How the math works

Premium = (value / 1000) × rate × years.

$45M / 1000 × $4.5 × 1.5 = $304k premium. $17k/mo. Standard for mid-size commercial.

How to Use

Enter total project value.
Enter construction months.
Enter premium rate per $1000.
Enter deductible.
Read total premium.

Frequently Asked Questions

Coverage?

Damage during construction: fire, theft, weather (wind, hail, flood depending on rider), vandalism, collapse. Typically through substantial completion. Covers soft costs partially. Required by most construction lenders.

Typical rates?

Residential: $2-4 per $1000 of value. Light commercial: $2-5. Industrial/heavy commercial: $4-10. High-risk locations (coastal, wildfire): higher. Rates based on: project type, location, builder quality, loss history.

Options?

Completed value form (covers through substantial completion). Reporting form (adjusts by actual spend). Extensions: debris removal, profits/delay, soft costs, property away from site. Tailor to risk profile.

How does this affect my portfolio-level metrics?

Single-asset impact rarely matters in isolation for a portfolio of 20+ assets, but systematic patterns do. If the same issue shows up across 10% of your portfolio, the aggregate impact is meaningful. Track this metric at the portfolio level quarterly. Institutional operators aggregate these monthly into a KPI dashboard for investors and lenders.