Why Builder’s Risk Insurance Is a Must on Every Job Site

Protect your build. Learn why builder’s risk insurance is essential for contractors, builders, and remodelers in DFW—especially against theft and weather damage.

If you’re a builder, remodeler, or general contractor in Mansfield, Fort Worth, or anywhere across the Dallas-Fort Worth metro area, you already know: job sites are vulnerable. Materials get stolen, equipment gets damaged, and Texas weather doesn’t always cooperate. That’s why builder’s risk insurance is not just a nice-to-have—it’s a must-have.

At McKnight Insurance, we work with construction pros every day who ask:

• Do I really need builder’s risk insurance if I already have general liability?
• What exactly does builder’s risk cover?
• Who pays for it—the contractor, the property owner, or both?
• Can I get coverage for weather damage or theft?

Let’s walk through the answers and explain why builder’s risk insurance is essential on every job site, whether you’re building from the ground up or remodeling a kitchen.

What Is Builder’s Risk Insurance?

Builder’s risk insurance (also called course of construction insurance) is a specialized property policy that covers buildings under construction or renovation.

It protects against direct physical loss to:

• Structures under construction
• Materials and supplies onsite, in transit, or temporarily stored offsite
• Equipment used in the construction process (depending on policy)

This type of insurance typically covers:

• Fire
• Vandalism
• Theft
• Lightning
• Wind and hail (important for Texas!)
• Vehicle or aircraft damage
• Explosions

What Doesn’t Builder’s Risk Cover?

Builder’s risk is not a catch-all. It usually doesn’t cover:

• Liability claims (use general liability for that)
• Worker injuries (that’s workers’ comp)
• Tools (use inland marine or equipment coverage)
• Faulty workmanship or design errors

But for protecting the structure, materials, and property value of your project, it’s indispensable.

Who Needs Builder’s Risk Insurance?

Builder’s risk is essential for:

• Home builders
• Remodelers and renovation contractors
• Developers and property owners
• Commercial construction companies

In most cases, the party with the most financial stake in the project buys the policy—either the contractor or the property owner. Some general contractors build it into their contracts or require the owner to carry it.

If you’re working with a lender, they will almost always require builder’s risk coverage before releasing funds.

Why Is Builder’s Risk So Important in DFW?

Here in the Dallas-Fort Worth area, we face a unique combination of risks:

1. Theft and Vandalism

Construction materials and equipment are hot targets. A few pallets of lumber, copper piping, or new appliances can be worth thousands—and are often left overnight on unsecured job sites.

Builder’s risk insurance helps you recover from these losses without draining your profits.

2. Unpredictable Weather

From hailstorms in Fort Worth to high winds in Mansfield, DFW weather can wreak havoc on job sites. Builder’s risk covers many weather-related damages so you’re not paying out of pocket.

3. Active Growth & Busy Job Sites

With so many new builds and remodels happening across North Texas, contractors are managing multiple sites at once. More jobs = more exposure. A builder’s risk policy helps centralize and simplify risk management.

How Much Does Builder’s Risk Insurance Cost?

Cost depends on:

• Project type and size
• Duration of the build
• Total completed value (materials + labor)
• Location (urban Fort Worth vs suburban Mansfield)
• Coverage limits and deductibles

As a rule of thumb, expect to pay 1–4% of the total construction cost. A $500,000 project might cost $5,000–$15,000 for full-term builder’s risk coverage.

We can help you shop competitive rates and tailor the policy to your needs—so you don’t overpay for coverage you don’t need.

Pro Tip: Coordinate with Other Policies

Builder’s risk often works alongside:

• General liability insurance (for third-party injury/damage)
• Commercial auto (for vehicle risks)
• Inland marine/tools coverage (for mobile equipment and tools)

We help you coordinate your policies to avoid overlap and make sure nothing slips through the cracks.

Get Builder’s Risk Insurance—Fast and Easy

At McKnight Insurance Services, we make it easy for contractors and builders across DFW to:

• Get fast quotes on builder’s risk coverage
• Understand what’s covered (and what’s not)
• Bundle policies to save money
• File claims when something goes wrong on the job

We’re local, responsive, and know how construction works in Texas.

Are you frustrated with your insurance? Get coverage that works as hard as you do. Contact McKnight Insurance today and protect your next project with builder’s risk insurance done right.

Speak with a local agent now—we’ll walk you through everything.