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Builders risk insurance for Maryland construction & renovation projects

US Assure-appointed for new builds, whole-house renos, additions, and spec construction

Rockville, MD • Serving Maryland builders, owners, and contractors since 2011

Builders risk insurance covers the structure you're building and the materials going into it — from the day excavation starts (or the first delivery arrives) through certificate of occupancy. It's a specialty product designed for the riskiest window in a property's life: when the building is partially complete, the site is full of valuable materials, and the systems that protect a finished home (locked doors, smoke detectors, weatherproof envelope) don't yet exist. For Maryland projects we route most builders risk business through our US Assure appointment, the appointed builders risk specialist in our portfolio.

US Assure is purpose-built for construction. Their underwriting is fast (most quotes return in 24-48 hours), their term lengths are flexible (3 to 12+ months with renewable options), and the conversion from builders risk to a standard homeowners policy at completion is something we coordinate as a routine handoff rather than a one-off scramble. Whether you're building a new home in Clarksburg, doing a whole-house renovation in Chevy Chase, adding a second story in Kentlands, or flipping a Silver Spring teardown, the right builders risk policy keeps the project insurable during the construction window without leaving gaps that can cost you a claim.

What builders risk covers (and what it doesn't)

Builders risk covers the in-progress structure and materials against a broad set of physical perils. It does not cover liability for injuries on the job site, workers' compensation, or losses caused by faulty workmanship itself. The distinction matters because clients often assume "builders risk" is a single policy that covers everything that can go wrong on a job — it's not. You need it alongside other coverages, not in place of them.

Covered (typical builders risk):

Not covered (need separate policies):

Why standard homeowners won't cover an active build

If you own a Maryland property and start a major renovation, your existing homeowners policy is not the right vehicle to protect the project. Most HO-3 forms restrict or exclude coverage during periods of substantial renovation, particularly when the structure is partially demolished or extensively opened up. Standard homeowners policies also typically cancel or non-renew when the property is vacant for an extended period — which is exactly the situation during a teardown-and-rebuild or a whole-house renovation where the owner moves out for 6-18 months.

The right structure is to keep the existing HO-3 in force only if part of the home remains occupied and unrenovated (with disclosure to the carrier), and to add a builders risk policy that covers the renovation work itself. For pure teardown-and-rebuild, the existing HO-3 typically goes to a vacancy basis or cancels entirely, and the builders risk becomes the primary protection until the new structure receives certificate of occupancy.

What our US Assure appointment brings

US Assure has built its book around builders risk and course-of-construction insurance, which means a few practical things for Maryland clients:

Maryland construction projects we write

Our builders risk book covers a wide range of Maryland project types. A non-exhaustive list:

Coverage limits & terms to get right

Term length: 12-month vs renewable

Most Maryland residential builds fit a 12-month policy term comfortably, but Montgomery County permit timelines, weather delays, and contractor scheduling routinely push projects past the original completion date. We default to 12 months with renewable options, and we track the expiration date so we can extend mid-term before the policy lapses. Lapses during construction create denial risk on any claim that occurs during the gap, so renewal is one of the things we proactively manage on every active builders risk policy.

Soft costs

Soft cost coverage is an optional endorsement that pays additional architect, engineer, and professional fees, lost rent during a delayed completion, and extra interest on construction loans when a covered loss extends the project timeline. For owner-occupant projects with a construction loan, soft costs of $50K-$150K are common and worth adding. For developer or investor projects, soft cost limits scale with the size and financing structure of the deal.

Debris removal

After a covered loss, debris removal pays the cost of clearing the site so reconstruction can begin. Standard builders risk policies include a percentage-based sub-limit (often 5-25% of the dwelling limit). On larger projects we expand the debris removal limit explicitly because the percentage default can fall short on a serious loss.

Scaffolding & form work

Temporary structures, scaffolding, falsework, and form work used during construction are typically covered up to a sub-limit. For projects with significant scaffolding investment (multi-story new builds, complex masonry), we confirm the sub-limit and expand it if needed.

Materials in transit

Materials being trucked from a supplier or staged at an off-site warehouse are covered subject to a transit sub-limit and an off-premises storage sub-limit. For Maryland projects with significant cabinet, window, or millwork orders staged before installation, we confirm these sub-limits match the value of what's typically being held off-site.

Builders risk vs standard homeowners — when to switch

The switch happens at certificate of occupancy. The day the C.O. is issued and you can legally occupy the structure for its intended purpose, the builders risk has done its job and the property needs a standard homeowners policy. We schedule the handoff so the HO-3 (or HO-5 on higher-value builds) binds the same day the builders risk ends. No gap, no overlap, no surprises.

For Maryland new construction we routinely convert US Assure builders risk into Erie, AIC, or Chubb homeowners policies depending on the property value and profile. For Bethesda, Chevy Chase, Potomac, and other HNW markets, the converted policy is typically a Chubb Masterpiece form. For mid-market upcounty new builds, Erie or AIC are usually the right fit. The carrier choice on the converted policy is a separate conversation that happens during the build, well before the C.O. date, so the binder is ready to issue when the time comes.

Cross-link to our full carrier roster for how US Assure fits with the rest of our appointments, or to homeowners insurance and our Rockville overview for the converted-policy side of the handoff. Ready to get a builders risk quote? Request a quote or call 240-243-0042.

Common Maryland builders risk questions

Who needs builders risk insurance?

Anyone with financial interest in an active construction project — the property owner, the general contractor, the lender (often required), the developer, or all of the above. For Maryland projects, builders risk is essentially mandatory on new home construction, whole-house renovations, and significant additions because no other policy is going to cover the in-progress structure, materials on site, and materials in transit. We routinely write builders risk for homeowners doing a teardown-and-rebuild in Bethesda or Chevy Chase, contractors handling spec builds in Olney or Clarksburg, and investors flipping properties throughout MoCo.

When does builders risk start and end?

Builders risk typically starts the day materials arrive on site (or the foundation is poured) and ends at the earliest of: project completion (certificate of occupancy), the property being occupied for its intended purpose, the policy term expiring, or the project being sold or abandoned. For most Maryland projects we write 6- or 12-month terms with renewable options if construction runs long. Coordinating the end-of-builders-risk handoff to a standard homeowners policy at certificate of occupancy is one of the most important things to get right, because gaps in coverage at the handoff can create real problems if a loss occurs in that window.

Does it cover materials at the lumber yard?

It can — most builders risk policies include some coverage for materials in transit and at temporary off-site storage locations (the lumber yard, supplier warehouse, fabrication shop), subject to sub-limits. We confirm transit and off-site storage limits on every policy because Maryland general contractors routinely stage cabinets, windows, and millwork at supplier warehouses before installation, and theft or damage during that staging window happens.

What if I'm doing the work myself (DIY)?

Owner-builder projects are eligible for builders risk through US Assure and other markets, but underwriting questions are tighter and the policy excludes coverage for any work you perform yourself if the loss is caused by your own faulty workmanship. The policy still covers fire, theft, weather, and vandalism on the structure regardless of who's swinging the hammer — so DIY builders absolutely should carry it. We just disclose owner-builder status up front to avoid issues at claim time.

Does it cover the contractor's tools?

No — contractor-owned tools, equipment, and vehicles are covered under the contractor's own inland marine (tool coverage) or commercial auto policy, not under builders risk. Builders risk covers the structure being built and the materials that will become part of the structure. If your GC asks about coverage for their excavator, scaffolding ownership, or pickup truck, that's a conversation about their commercial coverage, not yours.

How is the limit calculated?

The builders risk limit should equal the total completed value of the project — construction cost plus all materials, labor, and soft costs you want to insure — not the appraised value, the loan amount, or the lot price. For a $1.4M whole-house build in Bethesda where the structure cost is $900K, you write $900K of builders risk (with any soft cost coverage layered on top), not $1.4M. Under-insuring leads to coinsurance penalties at claim time; over-insuring costs premium for no benefit.

What about a partial occupancy during the build?

Most builders risk policies restrict or exclude coverage once any part of the structure is occupied for its intended purpose. For Maryland renovation projects where the owner is living in part of the home while the addition or renovation is underway, we write the policy with an occupancy endorsement that defines exactly what's covered while occupied — and we strongly recommend keeping the existing homeowners policy in force on the occupied portion as a layered structure. Trying to run a builders risk policy without disclosing occupancy is a common mistake.

What if construction goes longer than the policy term?

Builders risk policies are renewable. If your 12-month term is going to expire before substantial completion, we extend the policy (usually a midterm extension request to US Assure) rather than letting it lapse. Lapses on a builders risk policy mid-project create denial risk on any claim filed during the gap, so we track expiration dates closely and proactively renew on projects that are running long — which is most of them, in Montgomery County's permitting environment.

Can I convert builders risk to homeowners at completion?

Yes — and this is one of the most important transitions to manage correctly. Once the certificate of occupancy is issued and you move in, the property needs a standard HO-3 or HO-5 homeowners policy and the builders risk can be canceled. We schedule the handoff so the HO-3 binds the same day the builders risk ends, with no gap and no double coverage. US Assure builders risk policies bind cleanly into Erie, AIC, Chubb, or any of our other homeowners markets at completion.

Does it cover theft from the job site?

Yes — theft of materials, fixtures, and appliances that are intended to become part of the structure is one of the core builders risk covered perils, and it's also one of the most-claimed. Copper plumbing, HVAC equipment, appliances delivered to a job site, and high-end fixtures are all routine theft targets on Maryland construction projects. The policy pays for the stolen materials at replacement cost subject to your deductible. We recommend documenting deliveries and securing the site to support clean claims.

Maryland-specific exposures for builders risk?

Three exposures matter more in Maryland than the average market: weather (heavy rain events that can damage open framing or basement excavation), permit timeline risk (Montgomery County and municipal permitting routinely stretches project completion well past initial estimates), and theft (copper, tools, and appliances are frequent targets on suburban construction sites). We size builders risk terms, soft cost limits, and theft deductibles around those realities rather than around generic national defaults.

How much does builders risk cost in Maryland?

Builders risk premiums typically run 1-3% of the completed project value, depending on construction type (frame, masonry), project duration, occupancy, location, and how much soft cost coverage you include. A $700K Bethesda whole-house renovation might run $4,000-$9,000 for a 12-month policy; a $1.4M Olney new build might run $8,000-$18,000. US Assure's underwriting is responsive and we can usually quote within 24-48 hours of receiving project plans, address, and construction budget.

Get a Maryland builders risk quote in 24-48 hours

US Assure-appointed for new construction, renovations, and additions. We coordinate the handoff to homeowners at certificate of occupancy.

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