Builder’s Risk Insurance in Michigan: Online Quotes, Coverages, and Costs
Construction is on everyone’s mind in Michigan right now. Whether it’s the work going into revitalizing downtown Detroit or the soaring costs of home prices across the Wolverine State, a lot of time, money, and thought is going into construction work across the state.
However, alongside all of this construction comes large financial risks. Under-construction buildings can be prone to fire, vandalism, and theft, which can end up costing their backers and owners millions.
For this reason, the need for comprehensive Builder’s Risk Insurance solutions is growing. In this guide, we’ll introduce you to the coverages, costs, and benefits that make Distinguished’s Builder’s Risk Program ideal for Michigan’s unique construction needs.
What Kinds of Projects Will Distinguished Cover in Michigan?
Distinguished’s Builder’s Risk Program covers all kinds of buildings in Michigan, including single-family homes, mixed-use buildings, and commercial properties. Plus, we can cover:
- Betterments
- Renovations
- New Construction
Not sure if your client is eligible? Reach out to our team — we are here to help.
What Perils Does Distinguished’s Builder’s Risk Insurance Cover?
Our Builder’s Risk program covers risks for under-construction buildings and any temporary or existing structures on the site. This means complete property protection in the event of damages from:
- Extreme weather events
- Vandalism
- Theft
- Fire
Beyond property damage, Distinguished also offers coverages for:
- General liability
- Soft costs
- Mold and fungus
- Off-site materials in transit
How Much Does Builder’s Risk Cost in Michigan?
At Distinguished, we recognize that every construction project is unique. From a simple kitchen renovation to a complex, mixed-use apartment build, there’s no way to provide a one-size-fits-all cost estimate for your clients.
However, a general rule of thumb for Builder’s Risk is to expect a policy to cost anywhere from 1-5% of the total project cost. Beyond the price of the total project, other factors our underwriters consider are:
- Valuation Method: Whether the project is assessed using Actual Cash Value (ACV) or Replacement Cost (RC)
- Project Location: The specific site and its surrounding area
- Environmental Considerations: Local climate and natural disaster risks
- Construction Materials: The type and quality of materials used
For an accurate, project-specific quote, we invite you to register with Distinguished and use our online portal to submit your business. In most cases, you’ll receive an instant, bindable quote tailored to your client’s unique project.
Who Needs to be Insured by a Builder’s Risk Policy?
Builder’s Risk insurance should name all parties with a significant financial stake in the construction or renovation project. Typically, this includes:
- Property Owners: Whether it’s a homeowner adding a second floor or a developer creating a multi-unit complex, the property owner often has the largest financial interest and should be named on the policy.
- General Contractors: As the primary overseer of the project, the general contractor needs protection against potential losses.
- Subcontractors: Various specialized workers contributing to the project 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.
- 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 on the policy.
The party with the most substantial financial interest usually purchases the policy, often the property owner or general contractor. However, all relevant parties should be named as insureds.
Why You Should Partner With Distinguished for Builder’s Risk in Michigan
For brokers looking to grow their business in Michigan’s Builder’s Risk market, partnering with Distinguished offers a number of strategic advantages. These include:
- Established Program: We are one of the largest Builder’s Risk insurers in the nation, so you know whether it’s tomorrow or five years from now, we will be here to give your clients top-rate insurance options.
- Instant Quotes: Our online portal streamlines submissions, delivering bindable quotes in many instances right away.
- Comprehensive Coverage: Our program offers broad protection against most risks, providing a robust solution for various project types and sizes.
- Responsive Claims Service: Our 24/7 claims team ensures your clients have timely access to funds when needed, minimizing project disruptions.
- One-Stop Shop: Our coverage options span the full spectrum of construction projects, from residential to commercial and mixed-use developments.
- Smart Supplementals: Our supplemental coverages allow for precise policy customization to fit the needs of every client you serve.
- Expert Underwriting: With years of specialized experience, our underwriters excel in assessing and insuring even the most complex or unique Builder’s Risk projects.
- Flexible Policy Terms: Choose from 3, 6, or 12-month coverage periods, with simple extension options and smooth transitions to vacant building policies if required.
Partner With Distinguished Today
Secure comprehensive Builder’s Risk coverage that will win you business in Michigan in just three easy steps:
- Register your agency with Distinguished Programs.
- Access our online Broker Portal.
- Submit your client’s information for a quote.
Most quotes are processed instantly, with some niche cases requiring a manual review that can take up to 48 hours.
For a closer look at our policies and their benefits, download our Builder’s Risk Insurance eBook or explore our Builder’s Risk program page.
If you have any other questions, feel free to review our FAQs section or contact one of our insurance specialists.
Builder’s Risk FAQs
What policy lengths does Distinguished offer?
We can offer your clients policy terms of 3, 6, or 12 months. Extensions are available for qualifying projects.
What is the maximum total insurable value (TIV) for a Builder’s Risk policy at Distinguished?
Our maximum TIV is $20 million. However, it will depend 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 (nearly) every state. The only exceptions are:
- Hawaii
- Florida
- Kentucky
- Suffolk County, NY
If you operate out of another state, you can also look at our more location-specific Builder’s Risk articles.
Do we offer Builder’s Risk for coastal properties?
We offer Coastal Builder’s Risk in the following states:
- Delaware
- Georgia
- Hawaii
- Maryland
- Mississippi
- Alabama
- North and South Carolina
- New Jersey
- Rhode Island
- Virginia
- Texas (commercial only)
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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