What Is Builder’s Risk Insurance and Why Do Texas Contractors Need It?

When you’re overseeing a construction project—whether it’s building a new home, renovating an office, or adding an extension—unexpected setbacks can quickly derail your timeline and budget. Builder’s risk insurance is designed to protect your investment during construction, but many contractors and property owners aren’t sure what it covers or why it’s essential.

At MAKZ Insurance Agency LLC, we help Texas builders, contractors, and property owners secure the right coverage for every phase of their project. Here’s what you need to know about builder’s risk insurance:

What Is Builder’s Risk Insurance?

Builder’s risk insurance (sometimes called “course of construction” insurance) is a specialized type of property insurance that covers buildings and structures while they’re under construction or renovation. It protects against damage to materials, fixtures, and equipment on site—whether the project is residential or commercial.

What Does Builder’s Risk Insurance Cover?

A typical policy can include protection for:

• Fire, lightning, or windstorm damage

• Vandalism and theft of materials

• Explosion

• Hail, rain, or other weather-related incidents

• Damage from vehicles or aircraft

• Certain water damage events

What’s usually not covered:

Earthquakes, floods (unless added), normal wear and tear, employee theft, or poor workmanship.

Who Needs Builder’s Risk Insurance?

You should consider builder’s risk insurance if you are:

• A general contractor or subcontractor

• A property owner or developer

• A house flipper or investor

• An architect or engineer with a financial interest in the project

Lenders and project owners often require proof of builder’s risk insurance before work begins.

Why Is Builder’s Risk Insurance Important in Texas?

Texas weather can be unpredictable—hail, wind, and heavy storms can cause significant damage to construction sites. Theft and vandalism are also real concerns for materials and equipment left on-site. Without builder’s risk insurance, you could be left paying out of pocket for repairs or replacements.

Key Benefits of Builder’s Risk Insurance

• Protects your financial investment in the project

• Helps keep your project on schedule by covering damage-related delays

• Meets lender and contract requirements

• Peace of mind knowing you’re prepared for the unexpected

How to Get Builder’s Risk Insurance

1. Contact a Licensed Agent: Policies must be tailored to the size, scope, and duration of your project.

2. Provide Project Details: Share your construction budget, timeline, and any special risks.

3. Get a Custom Quote: At MAKZ Insurance Agency LLC, we work with top-rated carriers to find the right coverage for your needs.

Why Choose MAKZ Insurance Agency LLC?

• Local expertise: We understand the unique risks Texas builders face.

• Top-rated insurance partners: Access to leading carriers in the industry.

• Personalized service: Speak directly with a licensed representative for tailored advice.

Ready to protect your next project?

Call us at 281-912-3338 or request a builder’s risk insurance quote online.