Construction Builders Risk Insurance Calculator

Builder's risk covers materials, equipment, and structure during construction.

Construction value

Premium rate %

Term months

Soft cost rider

CAT zone adder %

Total premium

$16,500

Base premium

$15,000

Monthly equivalent

$1,179

How the math works

Base premium = value × rate. Total = base + CAT adder + soft cost rider.

$5M × 0.30% = $15k + $0 CAT + $1.5k rider = $16,500 builders risk premium.

How to Use

Enter construction value.
Enter premium rate %.
Enter term months.
Enter soft cost rider.
Enter cat zone adder %.
Read total premium.

Frequently Asked Questions

Builders risk pricing?

Premium: 0.15–0.50% of total construction value, paid upfront for project term. Course-of-construction (8–24 months typical) extension: $500–5k/month. Coverage: materials on-site + transit + structure. Add: soft cost coverage ($500–5k extra), delay-in-completion ($2–25k extra), wind/hurricane in CAT zones (+50–200% premium), terrorism rider ($1–10k). Lender-required typically. Owner vs GC who buys: GC includes in bid usually but owner-controlled saves 10–20%.

How does this impact project budget?

Construction budgets layer hard costs (50–65%), soft costs (15–25%), financing (5–10%), contingency (5–10%), and developer fee (3–5%). Schedule risk often equals or exceeds cost risk — every month delay carries carry cost (interest, real estate tax, insurance, opportunity cost) of 0.5–1.5% of project budget. This calculator quantifies one cost component.

Owner-controlled vs GMP vs CM-at-risk?

Lump sum/GMP: contractor takes risk above guaranteed maximum price, owner pays for change orders. CM-at-risk: open book, fee + GMP, more transparent. Construction management: agent for owner, GC subcontracted directly. Design-build: single accountability, faster but less price competition. Match delivery method to project complexity and owner sophistication.

Schedule and cost contingency?

Standard contingency: 10% of hard cost for entitlement, 5–8% for construction. Schedule contingency: 60–90 days buffer past target completion. Force majeure provisions: weather, material lead time, labor strike, permit delay. Track via critical path method (CPM) schedule. Major lender draws contingent on schedule + cost variance to budget remaining within 5%.