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Builders Risk vs Vacant Policy Calculator

Builders risk insurance covers property during construction — materials on site, partial construction, theft, vandalism. Vacant property insurance covers finished unoccupied buildings. Don't mix them up — a vacant policy typically excludes construction activity. This calculator compares cost for a construction project.

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Builders risk premium (full project)

$4,200

Vacant policy cost over construction

$7,200

Savings from builders risk

$3,000

Builders risk % of value

0.35%

Vacant policy % of value

0.60%

How the math works

Builders risk policies cover a property during construction, including materials on site, inside the building, and in transit. Typically priced once for the full project (not annual). Vacant property policies are for unoccupied finished buildings and don't cover construction. Builders risk is usually cheaper for active construction projects.

Builders risk typically transitions to standard commercial property coverage at substantial completion. Don't let coverage lapse at transition — confirm the handoff with both carriers before the GC walks.

How to Use

  1. Enter project replacement cost value.
  2. Enter builders risk rate per $100 of value.
  3. Enter vacant policy annual rate per $100.
  4. Enter construction period in months.
  5. Read both premiums and the cost savings.

Frequently Asked Questions

When to use builders risk?

Anytime physical construction or major rehab is occurring. Vacant policies typically have construction exclusions. Even short-term work (3-6 months) usually calls for builders risk instead of vacant.

Coverage includes?

Fire, theft, wind/hail, vandalism on materials and partial construction. Typically excludes earthquake/flood (can add endorsement). Does NOT cover faulty workmanship or design errors — that's the GC's liability.

Who is the named insured?

Owner + GC + major subcontractors typically. Additional insureds can include the construction lender and material suppliers. Structure matters at claim time — get this right upfront.

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