Builders risk insurance for Houston construction projects protects against physical damage during the build — fire, wind, hail, theft, vandalism, and flood (with endorsement). Houston’s exposure profile is distinct: hurricane and tropical storm risk, severe convective storms, and flood zones that cover large portions of the metro make builders risk structuring more complex than in most markets.
Texas builders risk policies typically run 1–4% of total construction value, but Houston projects may push toward the higher end due to wind and flood exposure. For SBA-financed builds, additional hazard insurance applies. See our guide to SBA hazard insurance requirements.
Key Takeaways
- Cost: 1–4% of construction value; Houston projects trend higher due to wind/flood
- Named-storm deductible: 2–5% applies during hurricane season (June–November)
- Flood: Not included in standard builders risk — requires a separate flood policy or endorsement
- Theft: Materials and equipment theft is a significant Houston risk — confirm coverage limits
- SBA requirement: SBA loans mandate hazard insurance with broader triggers than builders risk alone
Frequently Asked Questions
Does builders risk cover flooding in Houston?
Not by default. Standard builders risk excludes flood. A separate flood policy or flood endorsement is required, and lenders mandate it for any construction site in a FEMA Special Flood Hazard Area — which covers much of the Houston metro.
Disclaimer: This article is for informational purposes only and does not constitute insurance, legal, or financial advice. Coverage requirements vary by state and operation. Consult our licensed advisors for guidance specific to your business.
Houston Construction Insurance
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