Builder’s Risk

1. Property Damage Coverage: Builders risk insurance covers damage to the structure under construction, materials, and equipment from events like hail, wind, fire, vandalism, or theft. For example, the March 2025 hailstorm in DFW, with hail up to 2 inches, damaged structures and vehicles, and such events could ruin uninsured construction materials or partially built structures.
2. Financial Protection: Construction projects involve significant investment. If a hailstorm or other disaster (e.g., the June 2025 golf ball-sized hail in Fort Worth) damages your site, the policy covers repair or replacement costs, preventing you from bearing the full financial burden. Without it, a single event could derail your project budget.
3. Covers Natural Disasters: In DFW, hail, tornadoes, and floods are common. Builders risk insurance typically covers these perils, ensuring you’re not left paying out-of-pocket for damages. For instance, the 2025 storms caused broken windows and structural damage, which could affect construction sites.
4. Theft and Vandalism: Construction sites are vulnerable to theft of materials (e.g., copper wiring, tools) or vandalism. Builders risk insurance covers these losses, which can be costly, especially for high-value equipment.
5. Contractual Requirements: Many lenders, clients, or project owners require builders risk insurance before funding or starting a project. It’s often a condition in construction contracts to ensure all parties are protected.
6. Business Continuity: If a storm or fire delays your project, the policy can cover lost income or additional expenses (e.g., extended equipment rentals), helping you stay on schedule. The 2025 DFW hail events caused significant disruptions, highlighting the need for such coverage.
7. Liability for Third Parties: Some policies include coverage for injuries or property damage to third parties caused by construction activities, reducing your legal exposure.
8. Customizable Coverage: Policies can be tailored to your project’s scope, covering specific risks like hail or flood, which are prevalent in DFW. You can also add soft costs (e.g., financing fees) or delay-related expenses.

Why It’s Critical in DFW: The region’s frequent hailstorms (16 radar-detected events in Dallas in 2025) and high annual storm damage costs ($59–103 million in Dallas and Tarrant counties) make builders risk insurance particularly vital. These policies can be for new builds or reconstruction projects.  A single storm could damage scaffolding, roofing materials, or unfinished structures, leading to costly delays or repairs.  Without builders risk insurance, you’re exposed to potentially devastating financial losses from unpredictable events including theft of materials and tools. If you’re managing a construction project, this coverage is a safeguard for your investment and peace of mind. If you need help finding specific policies or costs, I can search for local providers or redirect you to resources. Let me know!