Real Estate Developer Insurance

Real Estate Developer Insurance is a comprehensive risk management strategy for ground-up construction and major renovation projects. It bridges the gap between land acquisition, the construction phase, and the final sale or lease. Unlike standard property insurance, this coverage specifically addresses the risks of active job sites, including construction defects, subcontractor injuries, and “soft cost” financial losses due to project delays.

The “Risk Reality”: Defects & Delays

For developers, the greatest threat is often not a fire, but a lawsuit filed years after the project is finished. “Construction Defect” litigation can target developers for up to 10 years after completion (depending on state statutes). Furthermore, supply chain disruptions can stall a project, causing interest payments and permit fees to pile up. According to the National Association of Home Builders (NAHB), regulatory costs and delays can account for up to 24% of the final price of a new home, making “Soft Cost” coverage essential to protect your margin against unforeseen stoppages.

Real Estate Developer Insurance Coverage

We design coverage that evolves as your project moves from blueprint to ribbon-cutting.

Real Estate Developer Insurance Cost

“How much does insurance for a development project cost?” Premiums are calculated based on the total “Hard Costs” (construction value) and the project duration.

• Builder’s Risk Estimates: Industry market data indicates premiums often range from 1% to 4% of the total construction cost, depending on the fire rating and location (e.g., coastal vs. inland).
• Soft Costs Impact: Adding coverage for “Soft Costs” (delay in opening) increases the premium but is critical for projects financed by bank loans to cover interest payments.
• Liability Factors: Liability rates depend heavily on the type of project—condo construction typically carries higher premiums than apartment or mixed-use retail due to the higher risk of owner lawsuits.

The “Independent Difference”: Why Dream Assurance?

Complex developments require more than a generic policy; they require a risk architect. “Independent Means Multiple Choices.”

• E&S Market Access: Many standard carriers will not insure ground-up construction. We access Excess & Surplus lines markets that specialize in high-value development risks.
• Contract Review: We help review the insurance requirements in your lender agreements and construction contracts to ensure you are in compliance before breaking ground.
• Risk Transfer: Our team assists in structuring indemnification agreements to ensure liability is properly shifted to subcontractors where appropriate.

 
Experience the confidence shared by the professionals we protect, and let us turn these options into a clear, comprehensive protection plan for you.

Dream Assurance

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Samuel Gonzalez

16:24 15 Dec 25

Michell is great 100%recomended

Marques Sanders

20:19 08 Dec 25

Very nice representatives and excellent service 👌

Red Lightning

04:58 22 Nov 25

Andre helped me get a great insurance for my new vehicle.

Kyle Bragg

18:22 19 Nov 25

Mr. Andre was a massive help beginning to end! He helped us get a great deal on our insurance, and explained everything thoroughly. It isn’t every day you get an insurance agent that you feel actually know what’s they’re talking about AND has your best interest in mind, but he definitely cares about his clients! Thanks Andre, and thanks Dream Assurance!

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