Builder’s Risk Insurance in Texas: Protecting Your Construction Projects

Houston is the number-one city for new-home construction, according to the U.S. Chamber of Commerce, followed by Dallas in the number-two spot. The Lone Star State has also witnessed a remarkable surge in commercial real estate development in recent years, with an estimated $70 billion invested in commercial construction projects during 2022. As construction activities in Texas continue to thrive, it’s important that your commercial and residential clients are well protected.

Recognizing the inherent risks linked to construction and renovation projects, Builder’s Risk Insurance in Texas is essential to mitigate potential losses. In this article, we’ll guide you through the distinct coverage options available through Distinguished.

High Total Insured Values (TIV)

Our program covers new builds, remodels, and betterment-only projects against physical damage losses from fire, lightning, wind, theft, vandalism, and other perils. Scaffolding, temporary buildings or structures, fencing, antennas, and materials stored outdoors or outside of a predetermined distance from the project are also covered.

The policy can be written for 3, 6, 9, or 12 months, with extensions available upon review. We cover all types of construction – from fire-resistive to frame:

  • New Construction & Remodels
    • $25 million TIV for fire-resistive and masonry non-combustible
    • $15 million TIV – joisted masonry
    • $7.5 million TIV – frame
  • Betterments Only – TIV up to $5 million for condo owners or tenants needing coverage for improvements made in their units

Additional Coverages, Sublimits Included

Our program includes additional coverages and sublimits:

  • Ordinance or Law: Covers the costs of bringing a building up to code after all or part of the building is damaged and needs to be rebuilt or repaired as a result of a covered peril in the policy.
  • Sewer Backup: Covers water damage and repair costs if a sewer or drain backs up into the building.
  • Temporary Storage Location: Covers stored materials and equipment as part of the construction project before being delivered to a job site.
  • Construction Documents: Covers blueprints, specifications, and other damaged or lost documents.
  • Trees, Shrubs, and Plants: Covers these items at the job site during planting or installation as part of the construction project, awaiting such action, or after such action while construction continues.

Coverage for Soft Costs

Coverage for soft costs is included in our policy for an actual loss sustained, not to exceed 10% of the project’s completed value. Soft costs include the reasonable and necessary expenses related to the construction, erection, or fabrication of a building/structure over and above those costs that would have been incurred had there been no direct physical loss. For example, advertising and design fees, professional fees, lease administration expenses, and additional real estate taxes and assessments incurred during the time that construction was delayed past the projected completion date. It’s important to review the policy form to see what is covered.

Our Coastal Builder’s Risk Program Is Available for Commercial Construction in Texas

Distinguished also writes Coastal Builder’s Risk insurance in Texas for commercial construction in the Lone Star State. Limits up to $20 million are available for new non-frame commercial construction. For frame commercial construction, we can write up to $6.5 million in limits. In our Remodeler’s program, we can insure commercial properties up to $5 million for all construction types.

The Cost of Builder’s Risk Insurance

The premium for Builder’s Risk insurance depends on numerous factors, including but not limited to the cost of the project, policy limits, building type, materials used, geographic area, length of project, deductibles, and site-protection measure safeguards. High-quality or difficult-to-replace materials will cost more to insure. A material’s susceptibility to damage is also a consideration. Wood frames, for example, are highly flammable and therefore more expensive to insure than other, more fire-resistant materials.

The average Builder’s Risk insurance policy premium is between 1% and 5% of the overall project cost. The project’s value should equal the construction cost, including labor and profit, excluding the land.

Why Distinguished?

In the event of natural or man-made property damage during construction or renovation, Distinguished can help you protect your clients’ properties. Backed by a specialized Builder’s Risk group, we deliver the highest level of expertise and superior claim service.

In addition to offering Builder’s Risk insurance in Texas, we also offer our program for residential and commercial properties in Alabama, Delaware, Georgia, Maryland, Missouri, New Jersey, North Carolina, Rhode Island, South Carolina, and Virginia.

You can submit your business through our online submission portal. Simply register your brokerage, go to our Broker Portal, and spend a couple of minutes adding in the insured’s details, and we’ll get back to you with a quote. If your clients like what they see, you can bind the policy right there through the same online portal.


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.

‣ Register Your Agency
‣ Learn More
‣ Contact Us

New call-to-action