Farmer Brown announced expanded guidance for contractors seeking builders risk insurance and related coverage. The company released new educational information explaining how builders risk policies operate during construction, how coverage cost develops as projects progress, and how property owners move into homeowners and auto coverage once construction ends.
Construction projects carry risk from the moment materials reach a job site. Builders risk insurance protects structures during construction and applies to new builds, major renovations, and property conversions. Contractors often request builders risk quotes before work begins so lenders, property owners, and project managers meet insurance requirements and understand the expected insurance cost before construction activity starts.
Typical builders risk cost depends on project type and value. New construction commonly averages about 30 cents per one hundred thousand dollars in coverage. A project valued at one million dollars may carry a builders risk price near three thousand dollars. Renovations and rehabilitation projects often cost more because existing structures carry higher exposure. Industry averages place those policies around sixty five cents per one hundred thousand dollars in coverage, which affects the total policy price contractors pay during the construction period.
Coverage increases while a project moves forward. Materials, fixtures, and structural components add value during each construction phase. Builders risk insurance reflects that growth, protecting the rising structure against damage from fire, theft, vandalism, weather, and other covered events while the total insured cost of the project continues to rise.
Several policy structures exist. Single project policies apply to one job site. Reporting form policies allow contractors to report project values during active construction schedules. Blanket builders risk coverage protects several projects under one policy while helping contractors manage insurance price and coverage cost across multiple locations.
Coverage typically includes materials, equipment installed at the site, and structures under construction. Land value, employee injuries, and contractor liability fall outside builders risk coverage and require separate policies.
Project completion marks the point when Builders Risk insurance ends. Once local authorities issue a certificate of occupancy, the construction phase closes and coverage for the building under a builders risk policy stops. Property owners then move into a homeowners insurance policy that protects the finished residence.
“Contractors focus on finishing the project safely and on schedule, while insurance must follow each stage of the build,” said John Brown, founder of Farmer Brown. “Builders risk protects the structure during construction. When occupancy begins, homeowners insurance takes over to protect the completed property.”
Homeowners insurance protects the structure, personal property inside the home, liability exposure, and loss of use if damage makes the residence temporarily unlivable. Many property owners also request auto insurance during this stage so personal vehicles remain insured under the same provider and so clients can compare policy price and coverage cost while reviewing insurance quotes.
“Many clients ask for home and auto quotes once construction ends,” Brown said. “Bundling those policies often helps reduce the overall price while giving homeowners competitive rates and affordable coverage under one provider.”
Farmer Brown operates nationwide and works with contractors and property owners seeking builders risk, homeowners, and commercial auto coverage. The company focuses on fast insurance quotes, clear pricing, competitive rates, and policies suited to construction businesses and property owners across the United States.
About Farmer Brown
Farmer Brown is a nationally licensed U.S. insurance provider founded in Chicago in 1996 and celebrating 30 years of service in 2026. The company serves contractors, small businesses, and property owners with compliant insurance solutions across all 50 states. Farmer Brown offers builders risk, liability, workers compensation, auto, and homeowners insurance with competitive rates from top rated carriers. The company has served more than 6,000 clients and maintains a focus on straightforward insurance quotes, fast approvals, and responsive customer service. For more information, visit farmerbrown.com.
Disclaimer
Insurance coverage is subject to policy terms and state availability.
Media Contact
John Brown
info@farmerbrown.com
