Builder’s Risk Insurnace in Charleston, SC
Because your dream home needs protection before you ever move in.
Building a custom home is an exciting process, but it also comes with unique risks. From hurricanes and coastal storms to theft at construction sites, the unexpected can quickly derail a project that has already taken months (or years) to plan.
At The Ferguson Insurance Team, we help homeowners secure the right builder’s risk policy so your investment stays protected from the moment construction begins until the day you get the keys.
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Why Builder’s Risk Insurance Matters
Homeowners insurance doesn’t apply to a home that isn’t finished yet, and your builder’s insurance usually doesn’t cover your financial interest in the project. That’s why most lenders, contractors, and architects require a builder’s risk policy.
It protects the structure and materials during construction, renovation, or major remodeling—coverage that’s essential in a coastal region like ours.
Construction Risks Unique to the Charleston Area
The Lowcountry is one of the most beautiful places to build a home—but also one of the most challenging. Charleston’s risk profile includes:
Hurricanes and Coastal Storms
Wind, rain, and storm surge can damage an unfinished structure more easily than a completed home.
Humidity and Moisture Exposure
Extended exposure to moisture can warp lumber, damage flooring, or ruin electrical materials before they’re installed.
Theft and Vandalism
High-value materials like copper, appliances, and tools are common targets on construction sites.
Flooding
Low-lying areas, marshfront lots, and barrier islands face elevated flood risk—even during normal thunderstorms.
Fire Risk
Hot work, temporary wiring, and unsecured electrical components can quickly lead to fire damage.
A well-designed builder’s risk policy helps protect against these threats so your project stays on track.
What Does Builder’s Risk Insurance Cover?
A typical builder’s risk policy provides protection for damage to the structure and materials during construction, including:
Damage to the Structure Under Construction
Framing, roofing, plumbing, electrical, drywall, and more.
Building Materials On-Site or In Transit
Lumber, windows, doors, appliances—whether stored on the property or being transported.
Temporary Structures
Fences, scaffolding, jobsite trailers, and similar equipment.
Debris Removal
Coverage for cleanup after a covered loss.
Soft Costs
Some policies can cover additional expenses caused by delays, such as architect fees, engineering costs, or loan interest.
Coverage varies by carrier, so we help you choose a policy that aligns with your project timeline and budget.
What’s Not Covered
Builder’s risk insurance includes exclusions and optional add-ons. Common exclusions include:
- Earth movement (optional add-on)
- Flooding (requires separate flood policy for the structure)
- Contractor negligence or poor workmanship
- Wear and tear or maintenance issues
- Workers’ injuries (covered by workers’ compensation)
We help you understand every exclusion and option so you can customize coverage to your specific build.
How Long Does Builder’s Risk Last?
Most builder’s risk policies last 6–12 months, depending on your project timeline. Coverage can be extended if construction takes longer than expected due to weather delays, permitting timelines, supply-chain issues or other setbacks.
Once your home is complete and you receive a certificate of occupancy, builder’s risk transitions into a standard homeowners policy.
Do I Need Builder’s Risk Insurance?
If you’re building a custom home builder’s risk insurance is essential. It protects:
- Your financial investment
- Your construction materials
- Your timeline
- Your peace of mind
We review your construction contract, project plans, and location so you know exactly what type of protection you need.
Why Choose The Ferguson Insurance Team?
Since 1981, we’ve helped Charleston-area families protect new home builds—large and small. We understand the complexities of coastal construction and work closely with contractors and lenders throughout the process.
When you work with us, you get:
- Access to multiple builder’s risk carriers
- Guidance on flood, wind, and hurricane-related exposures
- Help determining the right policy amount and timeline
- Local service from a team that understands Lowcountry construction challenges
Get Your Builder’s Risk Insurance Quote
Contact our experienced team to review your plans and get the right protection for your new home construction.
Reviews From Our Customers
Frequently Asked Questions
Can I switch insurance before my policy's renewal?
Yes! You do not have to wait until the expiration date of a policy to change to a different carrier. If you’re unsure about the process of changing your auto insurance, our agents can walk you through that process, step-by-step.
Do you offer coverage bundles?
We do! Many of the insurance companies we represent offer savings and other benefits for having multiple policies with them. We can also create a customized bundle within our agency with coverage from different companies to best fit your needs. Many of those companies still offer a discount for having multiple policies with our agency, even if they are not all with the same company.
I'm moving to South Carolina, can you help me with my insurance needs?
We help many new South Carolina residents take care of their insurance needs, both home or auto, when they first move to our state. Our agents can walk you through the process obtaining car and property insurance that satisfies the specific requirements of the state and your lender.
I'm not sure what I need, can you help?
Absolutely! We know that most people don’t spend all day thinking about insurance the way we do! We’re here to help by providing you with education and listening to your unique needs so we can better understand you and what insurance solutions would best fit your specific circumstances.
I'm being non-renewed. What do I do?
Unfortunately, non-renewals are becoming more and more common in our market, and often it has nothing to do with you, but the company has decided to change their risk profile. We work with clients to help place their homes and cars with companies that they qualify for, while seeking to provide the best balance of coverage and pricing. Talk to one of our licensed agents if you’re being non-renewed now.
I'm a first-time homebuyer. What insurance do I need for my home?
Congratulations! We work with many first-time buyers to insure their investment and provide knowledge about their needs and the insurance solutions available to cover those risks. In general, the main coverages you’ll need will be a Homeowner’s policy, as well as possibly Flood and Earthquake insurance. We have decades of experience providing all of these coverages to our clients and can help you understand your options, and what you’re paying for.
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Have a Question? Need a Quote? Get in touch with our team today.