Builder's Risk Insurance in North Carolina

Madison Insurance Group writes builder's risk coverage for North Carolina projects and compares the build across our carrier network instead of running it through one company's program, because a homeowners policy is written for a finished, occupied house and leaves the framing, the materials and the months in between out.


Bring us the plans and we will quote the project off its actual specs.

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What a Builder's Risk Policy Covers on an Active Job Site

A builder's risk policy insures the project while it is going up, including the material sitting on the ground waiting to be installed. Coverage follows the build, not just the address.


  • The structure under construction, including framing, sheathing and everything installed in it
  • Building materials at the job site, in transit to it, and in temporary storage off site
  • Fire, lightning, wind and hail damage to the work in place
  • Theft of materials, vandalism and collapse
  • Debris removal after a covered loss


Knowing what the policy leaves out matters just as much. Builder's risk covers property, not people and not the quality of the work. It does not cover injuries on the site or a contractor's liability for the job, which is a separate general liability policy, and it does not cover a contractor's own tools and equipment, faulty workmanship or design, or ordinary wear. Flood coverage is not automatic on a builder's risk policy and has to be added, and earthquake works the same way.


If your project needs something a builder's risk policy does not reach, ask us before the first delivery lands rather than after.

Who Needs Builder's Risk Insurance, and Who Actually Buys the Policy

Either the owner or the contractor can be the named insured, and on most North Carolina projects the construction contract and the lender settle which one it is. The policy usually shows up on a job like these.


  • An owner building a new house from the ground up
  • A builder or general contractor covering a job under contract
  • A homeowner part-way through a major renovation or an addition
  • An investor rehabbing a house to rent out or resell
  • A borrower whose construction lender requires the policy as a condition of the loan


If the finished house is going to be rented rather than lived in, the permanent policy behind it is landlord and rental property insurance, and we can have that ready before the build wraps.


The other parties on a project get attached to the policy by name, and the wording is specific. A construction lender is usually named as loss payee, which means claim payments on the building run through them. An owner or a contractor who is not the named insured is usually added as an additional insured, which extends the policy to them for this project. When your lender or your general contractor hands you a request for either one, send it to us and we will write it the way they asked.

What Builder's Risk Insurance Costs, and What Moves the Number

Builder's risk is rated per project rather than per month. The policy is written against the total completed value of the project, meaning what it costs to build the structure and not what the land is worth. Across the market, builder's risk premiums are commonly quoted at roughly one to four percent of that completed value.


What sits behind that percentage:

  • The total completed value of the project
  • Construction type and materials
  • How long the build is expected to run
  • Whether anyone is living in or occupying the structure during the work
  • The site's wind and water exposure
  • The deductible chosen
  • Whether soft costs or flood coverage are added


A market range is not a quote. We price a build off its own specs, so a short call with the plans, the completed value and the start date is what gets you a real number.

How Long a Builder's Risk Policy Lasts, and What Picks Up When It Ends

A builder's risk policy is written for a project term, most commonly three, six or twelve months. If the build runs long, that term can usually be extended, as long as the extension is requested before the policy expires rather than after it has lapsed.


Coverage ends when the project is finished, occupied, or accepted by the owner, whichever comes first. From there the permanent policy takes over, which for a house someone is moving into is homeowners insurance written on the completed structure. Lining that up before the builder's risk term closes is the step first-time builders most often find out about late, so we watch the expiration date with you and call ahead of it.

Builds We Cover From the Piedmont to the Mountains

We write builder's risk statewide across North Carolina, and the projects we see most often sit in the two markets our offices serve.


  • Piedmont projects around Concord, Kannapolis and China Grove in Cabarrus and Rowan counties, where new construction and additions on accessible lots make completed value and term length the main questions.
  • Mountain projects around Mars Hill and Asheville in Madison and Buncombe counties, where a steep site, a long gravel drive, tree exposure and winter access all change what can happen to a half-framed structure.
  • Coastal projects, which carry a separate named-storm deductible that belongs in the conversation before the policy is bound.


Timing is part of the risk. Hurricane season runs June 1 through November 30, and a framed shell with no roof dry-in is exposed to wind in a way a finished house is not, so a build that will be open through late summer is worth quoting with that in mind.

Why Owners and Builders Bring the Project to Us

  • We are independent, so a build gets shopped across our carrier network instead of a single company's program.
  • We work without quotas, so the policy we recommend is the one that fits the project.
  • We explain the coverage in plain language, in English or Spanish, which matters when the person reading the policy is also running the job site.
  • We hold four North Carolina offices, so a Concord addition and a mountain build outside Mars Hill each get an agent who knows that ground.
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What our clients say about working with us

More reviews from North Carolina clients are on our testimonials page.

Builder's Risk Questions We Answer Before the First Delivery

  • Does homeowners insurance cover a house while it is under construction?

    No. A homeowners policy is written for a finished, occupied home, and it is not built to pay for damage to a structure still going up. Builder's risk covers that stretch, from the first load of lumber through completion, and the homeowners policy takes over once the house is finished and occupied.

  • Do I need builder's risk insurance to get a construction loan in North Carolina?

    Construction lenders routinely require a builder's risk policy before releasing the first draw, and they generally want to be named as loss payee on it. The requirement comes from the lender rather than from state law. Send us what the lender asked for and we will write the policy to match it.

  • How long does a builder's risk policy last, and can it be extended?

    Builder's risk is written for a project term, most often three, six or twelve months. If the job runs past that date the term can usually be extended, but the request has to reach the carrier before the policy expires. Coverage ends at completion, occupancy or owner acceptance, whichever comes first.

  • Who buys builder's risk insurance, the owner or the contractor?

    Either one can hold the policy, and the construction contract usually decides it. On an owner-financed build the owner often carries it with the lender named as loss payee, while on a contracted job the general contractor may carry it and add the owner as an additional insured. What matters is that one policy is in force and that everyone who needs to be named on it is named.

  • Does builder's risk cover materials stolen off the job site?

    Yes. A builder's risk policy covers building materials at the site, in transit to it, and in temporary off-site storage, so lumber, windows, cabinets and fixtures taken before they are installed are a covered loss. It does not cover a contractor's own tools and equipment. Keep receipts and a running materials list, because that is what a theft claim gets settled from.

  • Does builder's risk cover flood damage during construction?

    Not on its own. Flood and earthquake are excluded from a standard builder's risk policy and have to be added where the site calls for it. If the build sits near a creek, a river or on low ground, ask about it before the policy is bound rather than after the water comes up.

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Get the Build Quoted Before the Lumber Lands

Have the project address, the total completed value, the start date, how long you expect the build to run, the construction type, and whether the owner or the contractor is buying the policy. That is everything we need to quote it across our carrier network and get your lender the certificate they are waiting on.

Or call the office closest to the job site. Concord (704) 782-2073, China Grove (704) 857-9003, Mars Hill (828) 680-1333. Asheville appointments are booked through the Mars Hill or Concord line.