Builder's Risk Soft Cost Coverage Calculator

Builder's risk 'soft cost' rider covers delay-driven interest, rent loss, and permits — the indirect costs. This calculator sizes recommended coverage.

Monthly interest carry

Monthly pro forma rent

Max delay (months)

Permit + soft cost

Recommended soft cost coverage

$915,000

Interest carry component

$330,000

Rent loss component

$510,000

How the math works

Soft cost coverage should cover max delay's interest + rent loss + permits. Scale coverage to worst-case scenario.

Typical premium add: 3-7% of soft cost rider limit. Usually worth 5-10x the premium in covered loss. Negotiate with broker for comprehensive rider.

How to Use

Enter monthly interest carry during construction.
Enter monthly pro forma rent.
Enter expected delay in worst case (months).
Enter permits and soft costs.
Read recommended soft cost coverage.

Frequently Asked Questions

What is soft cost coverage?

Builder's risk covers building + materials (hard cost). Soft cost rider extends to interest, rent loss, permits, architect fees, and additional financing — indirect costs of delay.

Typical coverage?

6-12 months of interest carry + rent loss + 20-30% of permits. Average: 10-20% of hard-cost policy limit as rider. Adds 3-7% to premium.

Is it worth it?

Yes for any significant delay risk. Even 3-month delay without soft cost coverage = owner eats carry + rent loss from equity. Rider transfers that risk to insurer.