Georgia does not require builders risk insurance by law. In practice, most construction lenders require it before releasing loan funds, because the building under construction is their collateral. Builders risk insurance covers physical loss to a structure while it is being built, including the materials on site and in transit, from causes like fire, wind, theft, and vandalism. Coverage ends at substantial completion or occupancy. Georgia sites also carry coastal hurricane and inland flood exposure that a standard policy treats differently. A coverage review can match the policy to your project scope, construction value, timeline, and lender requirements.
What does builders risk insurance cover in Georgia?
Builders risk is property insurance for the construction period. It pays to repair or rebuild the work in place when a covered event damages a project that is still going up. A typical Georgia policy covers four things.
- The structure under construction. The building itself, including foundations, framing, roofing, and every component installed during the build. If a fire guts the framing on a half-built two-story house in Marietta, the policy pays to rebuild the work that was in place. Coverage scales as the construction value grows.
- Materials on site, in transit, and at temporary storage. Building materials before installation, whether stored at the site, moving toward it, or held off-site. If a pallet of lumber and a stack of trusses are stolen from a Savannah jobsite overnight, that loss falls here. Material value on a construction site is often large, so this piece matters.
- Equipment and machinery once installed. HVAC systems, plumbing fixtures, electrical gear, and other building systems after they are set in the project. If a burst supply line floods a newly installed HVAC unit in a Gwinnett County spec home, that is covered. Gear not yet installed may sit under an installation floater on an inland marine policy instead.
- Soft costs and lost income. Some policies add soft costs (engineering fees, permits, extra financing costs) and lost rental income when a covered delay pushes back a planned rental or sale. If storm damage stalls an Athens duplex and the rental start slips, a loss of rental income endorsement can respond. These come as optional endorsements with their own limits.
What does builders risk not cover?
Builders risk pays for sudden physical damage, not for the cost of building things wrong or for risks that belong on other policies. Four common gaps show up on Georgia projects.
- Faulty workmanship and design errors. The defective work itself is excluded, though damage it causes to other finished parts may be covered. If a subcontractor mis-frames a wall on a Columbus build and a windstorm then collapses a roof section, the damage to the adjacent finished work is typically covered while the bad framing is not. Design mistakes usually fall to a design professional's errors and omissions coverage.
- Tools and equipment owned by contractors. A contractor's own tools, power equipment, and mobile machinery are not on the builders risk policy. If a nail gun and a generator are stolen from a Macon site, that belongs on the contractor's inland marine or equipment policy.
- Earthquake and flood. Both are standard exclusions. A flash flood on an inland creekside lot in metro Atlanta is a flood loss, not a builders risk loss, so a site in or near a flood zone needs a separate flood endorsement or National Flood Insurance Program policy. Earthquake is rarely material in Georgia given low seismic risk.
- Loss after construction ends. Builders risk stops at the earlier of substantial completion or occupancy. If a finished Roswell home is occupied and then vandalized, that is a homeowners or commercial property claim, not builders risk.
How does builders risk work under Georgia law?
No Georgia statute requires builders risk insurance. The requirement almost always comes from the construction lender, because the building is the loan collateral. Cash-funded projects are not required to carry it, though the same fire, wind, theft, and flood exposure remains. A few Georgia rules shape how a builders risk claim and a construction site are handled.
- Bad-faith claim denials. If a carrier denies or delays a covered loss without a reasonable basis, Georgia law lets the policyholder make a written demand and, after 60 days, pursue a penalty of up to 50 percent of the loss or 5,000 dollars, whichever is greater, plus attorney fees (O.C.G.A. 33-4-6). If a windstorm damages a framed Valdosta house and the insurer refuses a clearly covered claim, that statute is the remedy.
- Coastal wind and the residual market. Georgia has no state-run wind pool. The Georgia Underwriting Association (GUA) is the state's residual property market for wind and coastal risk (O.C.G.A. Title 33, Chapter 33). A coastal build in Glynn County near Brunswick, where the standard market may decline wind, can access coverage through the GUA when other options are unavailable.
- Flood is federal, not state-mandated. Georgia does not require flood insurance, but a federally backed construction or mortgage loan on a site in a FEMA Special Flood Hazard Area does. Georgia also has real inland flash-flood exposure away from the coast, which is why the flood exclusion matters even on Atlanta-area lots.
What does builders risk not replace for a Georgia contractor?
Builders risk is one policy in a construction program. It handles damage to the project, not injuries to workers or claims from other people. Georgia law requires separate coverage for those.
- Injured workers. Builders risk pays nothing if a framer falls on a Sandy Springs site. Georgia requires workers' compensation once a business has three or more employees, whether full or part time (O.C.G.A. 34-9-2(a)(2)).
- Vehicle crashes. A truck hauling materials that rear-ends someone is an auto claim, not builders risk. Georgia's minimum auto liability is 25/50/25, meaning 25,000 dollars bodily injury per person, 50,000 dollars per accident, and 25,000 dollars property damage (O.C.G.A. 33-7-11).
Builders risk vs related construction coverages
| Coverage | What it protects | Example Georgia loss |
|---|---|---|
| Builders risk | The structure and materials during the build | Fire destroys framing on a Marietta house under construction |
| Commercial property | A finished, occupied building and its contents | Storm damages a completed Alpharetta office |
| Inland marine | The contractor's own tools and equipment | Generator stolen from a Macon jobsite |
| Workers' compensation | Injured employees (required at 3+ employees, O.C.G.A. 34-9-2(a)(2)) | Framer falls on a Sandy Springs site |
Who needs Georgia builders risk insurance?
Builders risk fits anyone with money at stake in a structure while it is being built. That includes property owners putting up new construction, general contractors building for owners, homebuilders working on spec or pre-sold homes, real estate investors building rentals, commercial developers, and lenders that require the coverage as a loan condition. On most Georgia residential projects the construction contract puts the owner in charge of buying builders risk, since it is their building; commercial projects often assign it to the contractor. The contract controls who carries it.
What does builders risk cost in Georgia?
Builders risk pricing is usually a percentage of the total construction value, commonly 1 to 4 percent of the project cost. The rate moves with construction type, location, project complexity, and how long the policy runs. Most Georgia residential builders risk policies for single-family homes run between 1,200 and 5,000 dollars for a 6 to 12 month term. A coastal Glynn County project with wind exposure prices higher than an inland Athens build of the same value. A coverage review can put a real number against your specific project.
How do you file a Georgia builders risk claim?
Report the loss to your carrier the same day the damage happens. Construction sites change fast, and crews may need to move materials or shore up exposed framing, so contact the insurer before any stabilization or cleanup begins. Stopping work entirely is not required, but document the site condition first.
Documentation that speeds a claim includes:
- Photographs and video of every affected component: foundations, framing, roof decking, sheathing, and any installed finishes
- The construction schedule and completion percentage at the date of loss, which carriers use to value the work in place
- Receipts, invoices, or purchase orders for damaged materials on site or in transit
- Subcontractor agreements showing who supplied labor and materials for each affected section
- Site logs, superintendent notes, or inspection reports from the days around the loss
Two mistakes cause most disputes. Waiting until a construction draw or inspection to report damage lets a carrier question whether the loss happened before coverage applied to that phase. Assuming the policy stretches when a project runs long also backfires, because most builders risk terms have a fixed end date tied to the projected completion, and a project running over needs an endorsement before that date passes. If a loss involves structural components where the cause is disputed, such as weather versus workmanship, a licensed advisor can help clarify what the policy covers at the current phase. See our claims page for how the process works.
Which carriers write builders risk in Georgia?
The carriers available through Olive Cover are licensed and regulated in Georgia. We shop these markets and present the options that fit your project; a licensed advisor reviews the fit with you in a free coverage review.
- US Assure is a specialty builders risk carrier that writes Georgia residential and commercial construction with a broad appetite.
- The Hartford writes small to mid-market commercial insurance.
- Travelers writes broad mid-market commercial insurance.
See the full carrier list for what is available through us in Georgia.
Start your Georgia builders risk coverage before you break ground
Most construction loans require builders risk as a condition of funding. A coverage review walks through your project scope, construction value, timeline, and lender requirements, then compares US Assure and other carriers available through Olive Cover to structure the policy around your build.
Related reading: builders risk insurance basics, commercial property insurance, inland marine insurance, the insurance FAQ, Georgia insurance facts and statistics, and more insurance insights.