Builders Risk Premium Calculator

Builders risk priced by completed value and factors. This calculator estimates premium.

Project value

Construction months

Base rate/$100

Location factor

Trade factor

Total premium

$74,646

Base premium

$64,350

Monthly extension cost

$5,148

How the math works

Base = value × rate × location × trade factors. Extension = base × 8% × months beyond 12.

Always bind builders risk before first material delivery. Ground-up projects that go uninsured during excavation and foundation due to binding delays leave the owner with direct loss exposure during the highest-risk period of construction.

How to Use

Enter completed project value.
Enter construction months.
Enter base rate per $100.
Enter location factor.
Enter trade complexity factor.
Read total premium.

Frequently Asked Questions

Rate structure?

Typical base rate: $0.15-0.40 per $100 construction value for 12-month policy. Extensions: 5-15% per month added. Residential simpler than commercial — custom homes often higher rate than tract builds.

Factor variation?

Location: coastal/wildfire (+50-200%), urban/industrial (+20-50%), rural/greenfield (base). Trade: wood frame (+20%), concrete (+10%), steel (-5%). Height: low-rise base, high-rise (+50-100%).

Common gaps?

Soft costs. Delay in opening. Transit. Off-site storage. Each often sub-limited. Extended coverage 15-25% premium on top. Test limits against project value 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.