Builder’s Risk Insurance in Tennessee: A Broker’s Guide
The state of Tennessee has become attractive to new residents for its lower cost of living, access to nature, and accessibility to affordable housing. Its popularity has led to an increase in demand for construction of new projects as well as remodeling. In fact, employment in the construction industry increased in 62% of metro areas between 2022 and 2023.
An increase in construction also means an increase in financial risk. Job sites that are under construction are prone to things like fire, theft, and vandalism. All of which can cost their property or business owners millions of dollars in losses without adequate insurance coverage.
This is why the popularity of Builder’s Risk insurance is growing. Read on to learn more about the coverages, costs, and benefits that make Distinguished’s Builder’s Risk Program ideal for Tennessee’s booming industry.
What Does Distinguished’s Builder’s Risk Cover?
Whether it’s a construction project for a single-family home, a mixed-use building, or a commercial property, Distinguished’s Builder’s Risk Program has got it covered. Our insurance program is designed to handle all kinds of projects, including:
- Betterments
- Renovations
- New Construction
To find out if your client is eligible for coverage through our Builder’s Risk Program, contact our team today.
What Risks Does Distinguished’s Builder’s Risk Insurance Protect Against?
When a project is under construction or renovation, your clients are likely not covered by their homeowner’s insurance or business insurance. This is where Builder’s Risk becomes essential. Different Builder’s Risk insurance policies vary from one insurance carrier to another.
Distinguished offers protection against:
- Acts of God: Such as weather events that are beyond human control.
- Vandalism: Intentional damage to the job site by third parties, including things like broken glass or graffiti.
- Theft: Covers the cost of replacing covered items that were stolen from the job site.
- Property damage: Damages to the building that is being constructed or renovated.
- Equipment: Covers damages to or theft of equipment used on the job site.
- Soft costs: Additional expenses caused by a covered claim that are not related to building materials, equipment, or other hard costs; these soft costs could include additional reinspection fees, increased tax burdens, and insurance premiums.
- Materials: The loss of building materials that are on the site or in transit between covered sites.
- Premises liability claims: Legal expenses and liability coverage related to any injuries, including trips and falls, that occur on the site.
Our program also offers the following coverages:
- General liability insurance
- Mold and fungus
- Off-site materials in transit
How Much Does Builder’s Risk Cost in Tennessee?
Insurance needs vary from one construction site to another, whether renovating a bathroom or constructing a brand-new building. This is why it’s impossible to provide a one-size-fits-all cost estimate for your clients.
Typically speaking, Builder’s Risk policies will cost anywhere from 1-5% of the total project cost. This cost is based on a number of factors that our underwriters will look at, including:
- Valuation method: Whether the project is assessed using Actual Cash Value (ACV) or Replacement Cost (RC)
- Project location: The geographic location and its surrounding area
- Environmental considerations: Any local climate and natural disaster risks
- Construction materials: The type and quality of materials used
To get a quote, register with Distinguished and use our online portal to submit your business. Once you do so, you can obtain a free quote that is tailored to your client’s unique needs.
Who Should be Named in a Builder’s Risk Policy?
The parties with a significant financial stake in the construction or renovation project should be named in the Builder’s Risk insurance policy. These entities are usually:
- Property owners: The person or people who own the property that is being constructed or renovated are usually the ones with the largest financial stake in the project. Naturally, they must be named on the policy.
- General contractors: Contractors are responsible for overseeing the project until completion. They require protection against potential losses, including professional liability.
- Subcontractors: These are specialized workers contributing to the project and should be covered to safeguard their interests.
- Architects and engineers: The professionals responsible for the design and structural integrity of the project may need coverage. Errors or omissions in their work could cause costly mistakes, injuries, or property damage. They require insurance to protect against potential claims.
- Financiers: Banks, lenders, or investors providing funds for the project should be named insured to protect their investments.
- Developers: In larger commercial projects, developers need to be included in the policy.
Why You Should Partner With Distinguished For Builder’s Risk in Tennessee
Insurance agents planning to expand their portfolio into the Tennessee builder’s market need look no further than Distinguised’s Builder’s Risk program. We offer your clients a number of benefits including:
- Wide-ranging coverage: Our program provides all-inclusive coverage, safeguarding various project types and sizes from most risks.
- Accessible pricing: We understand that cost is a factor for most clients. For this reason, we offer payment options that can flexibly fit your clients’ budgets.
- Streamlined claims process: With our 24/7 claims team, your clients can expect timely access to funds, minimizing project delays.
- Instant insurance quotes: Our user-friendly online portal allows for quick and easy quote submissions. In many cases, you can receive instant, bindable quotes.
- Tailored policy options: Choose from coverage periods of 3, 6, or 12 months.
Partner With Distinguished Today
Partnering with Distinguished is easy. Just follow these three steps:
- Register your agency with Distinguished Programs.
- Access our online Broker Portal.
- Submit your client’s information for a quote.
In most cases, you’ll receive an instant quotation. In some specific cases, we will need to conduct a manual review that can take up to 48 hours.
If you’d like to learn more about our program, download our Builder’s Risk Insurance eBook or check out our Builder’s Risk program page.
For any other questions, our team of insurance specialists is here to help.
Builder’s Risk FAQs
What policy lengths does Distinguished offer?
Our policy terms are 3, 6, or 12 months. Extensions are available for eligible projects.
What is the maximum total insurable value (TIV) for a Builder’s Risk policy at Distinguished?
Our maximum TIV is $20 million, depending on the project being insured.
- $7.5M maximum TIV for frame
- $5M maximum TIV for betterments only
- $20M maximum TIV for everything else
Which states are eligible for Distinguished’s Builder’s Risk Program?
Our program is available in almost every state. The only exceptions are:
- Hawaii
- Kentucky
- Suffolk County, NY
If you’re based in another state, take a look at our other location-specific Builder’s Risk articles:
About Distinguished Programs
Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate & Builder’s Risk, Community Associations, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.
View a full list of our programs and submit business with Distinguished.
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