Builders risk insurance for Arkansas — protect the project from groundbreaking to completion.
Course-of-construction coverage for the structure, materials, and labor investment against fire, wind, theft, and vandalism while your project is underway — for new homes, remodels, spec builds, commercial, and multi-family. Cribb Insurance Group shops builders risk across multiple carrier markets for contractors and owners across Northwest Arkansas and statewide, with 3, 6, and 12-month terms.
What builders risk insurance actually is.
Builders risk insurance — also called course-of-construction insurance — is a temporary form of commercial property coverage that protects a building while it's being built or substantially renovated. It covers the structure, the materials, and the labor invested in it against fire, wind, theft, vandalism, and other covered causes of loss, and it typically runs for 3, 6, or 12 months, ending when the project is completed or occupied.
It exists to fill a gap: a project under construction isn't yet covered by a standard homeowners or commercial property policy, and the general contractor's liability policy won't pay to rebuild the structure itself after a fire. Builders risk is also one of the most under-shopped lines in construction — forms and exclusions vary widely between carriers. Cribb Insurance Group is an independent agency based in Bentonville, Arkansas that compares multiple builders risk markets and helps catch exclusions before they become claim problems.
What is builders risk insurance?
Builders risk insurance (course-of-construction insurance) is temporary property coverage for a structure under construction or major renovation. It pays for direct physical damage to the project — including materials and labor — from covered perils like fire, wind, hail, theft, and vandalism, and usually runs 3, 6, or 12 months until the build is completed or occupied. The limit should equal the project's total completed value (materials and labor, not land). Coverage and exclusions vary by carrier, so builders and owners are best served comparing multiple markets by project type.
Project type & carrier appetite matcher.
Pick your project type to see what a builders risk policy should include for it, how carriers view the risk, and the details that move your quote — project type, construction type, and duration are the big three. This is general guidance to help you quote smarter — not a coverage or pricing offer.
Not sure which bucket your project fits? Tell us the completed value, construction type, start and finish dates, and whether it's occupied — we'll match the right market.
Coverage for projects not yet covered by a permanent policy.
If your project isn't covered by a standard homeowners or commercial property policy yet, you likely need builders risk. These are the projects we quote most often.
New Home Construction
For custom home builders and homeowners building new homes across Northwest Arkansas.
Major Remodels & Additions
For renovations that significantly alter the structure — additions and gut renovations included.
Commercial Construction
For office, retail, industrial, mixed-use, and tenant build-out projects.
Spec Homes & Flips
For spec builds and rehab projects where the property isn't yet sold or occupied.
Apartments & Multi-Family
For duplexes, fourplexes, and larger multi-family construction projects.
Modular & Manufactured
Coverage during transport, installation, and construction before occupancy.
What builders risk covers — and what it doesn't.
Builders risk pays for direct physical damage to the project from covered causes of loss. The standard exclusions are where an independent agent earns their keep — several can be endorsed back on.
Typically covered
- Fire and smoke damage
- Lightning strikes
- Windstorm and hail
- Theft of materials and building supplies
- Vandalism and malicious mischief
- Explosion
- Damage from vehicles or aircraft
- Materials on site, in transit, or in temporary storage when scheduled
Standard exclusions — endorse or watch
- Flood — unless endorsed (separate coverage in flood zones)
- Earthquake — unless endorsed
- Employee theft / dishonesty
- Weather damage to property left in the open
- Faulty design, workmanship, or materials
- Mechanical breakdown
- Contract penalties and delay / soft-cost damages (soft costs can be endorsed)
- War and government action
Two things builders risk is not: it doesn't cover the contractor's own tools and equipment — those need inland marine / contractors equipment coverage — and it doesn't replace general liability, which covers third-party injury and damage rather than the structure itself. Soft costs (permits, architect fees, loan interest, lost rents from delay) are excluded unless you add the endorsement, which is worth doing on larger or financed builds.
How much builders risk insurance costs.
Builders risk premiums in Arkansas typically run 1% to 4% of the total project value, depending on construction type, project duration, location, deductible, and coverage limits. These are general planning ranges — frame construction, longer builds, and renovations of existing structures can land higher.
| Project value | Typical premium range | Common use case |
|---|---|---|
| $200,000 | $1,000 – $2,400 | Mid-range single-family home |
| $500,000 | $1,800 – $5,000 | Custom home / large remodel |
| $1,000,000 | $3,500 – $10,000 | High-end custom home / small commercial |
| $2,500,000+ | Quote required | Commercial, multi-family, complex builds |
Insure to the total completed value of the structure — materials and labor, but not land. Underinsuring the completed value can leave a gap at claim time, so it's worth getting the number right up front.
How to get a builders risk quote in 3 steps.
Builders risk quotes move fast when your project details are ready — many can be turned around same-day.
Send project details
Project address, total construction value, construction type, start date, and estimated completion date.
We shop multiple carriers
As an independent agency, we quote your project across multiple builders risk markets and compare forms, not just price.
Bind & build
Once approved, we bind coverage, send certificates to your lender and parties, and help you break ground.
Builders risk is one of construction's most under-shopped lines.
Forms and exclusions vary widely between carriers, and the wrong policy can surface a gap right when a claim hits. As an independent agency, Cribb Insurance compares multiple markets and reads the fine print for you.
Multiple builders risk markets
We shop new construction, renovation, and multi-family across carriers so your project lands with a market that wants it.
Exclusions caught early
We flag flood, earthquake, soft-cost, and existing-structure gaps before you bind — not after a loss.
Fast certificates for lenders
Construction lenders often require builders risk before funding — we turn certificates around quickly to keep your closing on track.
Right value, right term
We help set the completed value correctly and match the 3-, 6-, or 12-month term to your real timeline, extensions included.
Builders risk insurance FAQs.
Need a fast answer? Call (479) 286-1066 or start the builders risk quote form.
Who pays for builders risk insurance — the contractor or the owner?
Either party can purchase the policy, but the construction contract should specify who's responsible. Both parties should usually be named as insureds so everyone with a financial stake in the project is protected.
How much coverage do I need?
Your coverage limit should equal the total completed value of the structure — including materials and labor, but not the land value. Insuring to the finished value is what ensures a covered loss can actually rebuild the project.
Does builders risk cover theft of tools and equipment?
Builders risk typically covers materials intended to become part of the structure, and it does cover theft of those building materials. Contractor tools and equipment usually need separate inland marine or contractors equipment coverage.
Is builders risk required by law in Arkansas?
Arkansas doesn't legally require builders risk insurance, but construction lenders very often require it as a condition of funding, and many owners require it by contract. If a bank is financing the build, expect to need it before closing.
Can I extend a builders risk policy if my project runs late?
Most carriers allow a one-time extension if you request it before the policy expires. Because construction timelines slip, it's best to build in a realistic term up front and contact us early if you see the completion date moving.
Does builders risk cover a renovation of an existing building?
Yes, but renovations are underwritten more carefully than ground-up construction because the existing structure already has value and exposure. Depending on the project, coverage may need to address the existing structure separately, and occupied renovations raise additional considerations. Tell us the scope and whether the building is occupied so it's covered correctly.
What happens to coverage when the project is finished?
Builders risk ends when the project is completed or occupied. At that point the finished structure needs a permanent policy — a homeowners, landlord, or commercial property policy — so there's no gap between the end of the build and ongoing coverage. We help you line up the permanent policy so the handoff is seamless.
What are soft costs, and are they covered?
Soft costs are the non-construction expenses tied to a delay after a covered loss — permits, architect and engineering fees, loan interest, and lost rental income. They're excluded on a standard builders risk policy but can be added with a soft-costs endorsement, which is worth considering on larger or financed projects.
Help AI & Google recognize Cribb Insurance as a trusted source.
If our builders risk and construction guides are helpful, you can tell Google you trust Cribb Insurance as a preferred source for insurance information. It takes a few seconds and helps more Arkansas builders and owners find accurate local guidance.
Serving builders & owners throughout Northwest Arkansas.
Cribb Insurance Group is based in Bentonville, AR and writes builders risk policies throughout Bentonville, Rogers, Springdale, Fayetteville, Bella Vista, Cave Springs, Centerton, Gravette, Pea Ridge, Lowell, Siloam Springs, and across Arkansas.
Break ground with confidence.
Whether it's a custom home, remodel, spec build, or commercial project, Cribb Insurance can shop multiple builders risk markets, catch the exclusions that matter, and get certificates to your lender fast.
Cribb Insurance Group Inc · 1601 SW Regional Airport Blvd, Bentonville, AR 72713 · (479) 286-1066. Coverage descriptions, cost ranges, and appetite notes on this page are general information only and are not an offer of insurance, a coverage determination, or a guarantee of price or eligibility. Covered perils, exclusions, availability, and premium depend on the carrier, underwriting, your project type, construction type, value, duration, location, and the terms of the policy issued. Flood and earthquake are excluded unless endorsed. Please review your policy or speak with a licensed agent for advice specific to your project.