Builders Risk Insurance Tennessee: What You Need to Know

Are you a builder or contractor in Tennessee? If so, it’s important to protect your upcoming construction projects with builders risk insurance. This type of insurance covers damage or loss to a building or structure during construction. In this article, we’ll explore the basics of builders risk insurance and why it’s essential for your business in Tennessee.

What is Builders Risk Insurance?

Builders risk insurance, also known as course of construction insurance, is a type of property insurance that covers damage or loss to a building or structure during construction. This type of coverage typically lasts until the construction project is completed and the property is ready for occupancy.

Builders risk insurance policies can cover a range of scenarios, such as fire, theft, vandalism, and weather-related damage. This coverage typically includes the cost of materials, labor, and equipment that are necessary to rebuild or repair the property.

Why is Builders Risk Insurance Important?

As a builder or contractor in Tennessee, you know that construction projects come with inherent risks. Accidents can happen at any time, and weather events can cause significant damage to your project. Without builders risk insurance, you could be left to cover the cost of repairs or replacement out of pocket.

Builders risk insurance can provide you with peace of mind during the construction process. With this coverage, you can focus on completing your project without worrying about unexpected costs that could arise from damage or loss. This insurance can also be essential in securing financing for your project, as lenders often require builders risk insurance to protect their investment.

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What Does Builders Risk Insurance Cover?

Builders risk insurance can cover a wide range of incidents that could cause damage or loss to your construction project. Some of the most common types of coverage include:

Fire Damage

Builders risk insurance can cover damage caused by fire or other types of heat-related incidents. This can include damage to the structure of the building, as well as any equipment or materials on the site.

Weather-related Damage

Weather events can cause significant damage to a construction project, from heavy rain and flooding to high winds and hail. Builders risk insurance can cover damage caused by these types of incidents, helping you to repair or replace damaged property.

Theft or Vandalism

Construction sites are often targets for theft and vandalism, as they can be left unguarded overnight. Builders risk insurance can provide coverage for losses caused by theft or vandalism, such as stolen equipment or damage to the site.

What Doesn’t Builders Risk Insurance Cover?

It’s important to note that builders risk insurance does not cover everything. Some types of damage or loss may not be covered by your policy. Some common exclusions include:


Earthquakes are not typically covered by builders risk insurance policies. If you live in an area that is prone to earthquakes, you may need to purchase additional coverage to protect your construction project.

Worker Injuries

Builders risk insurance does not typically cover injuries to workers on the job site. If one of your employees is injured during construction, you will need workers’ compensation insurance to cover their medical bills and lost wages.

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How Much Does Builders Risk Insurance Cost?

The cost of builders risk insurance can vary depending on a number of factors, including the size and value of your construction project, the location of the project, and the length of the coverage period. Generally speaking, builders risk insurance can cost anywhere from 1-4% of the total construction budget.

Choosing an Insurance Provider

If you’re in the market for builders risk insurance, it’s important to choose an insurance provider that understands the unique risks associated with construction projects. Look for a provider that has experience working with builders and contractors, and is willing to tailor coverage to meet your specific needs.

The Bottom Line

Builders risk insurance is an essential type of coverage for builders and contractors in Tennessee. With this insurance, you can protect your construction project from unexpected damage or loss, and ensure that you’re able to complete your project on time and on budget. Do your research and choose an insurance provider that can offer you the coverage and support you need.