Builder's Risk Insurance for Myrtle Beach Businesses

What Is Builder's Risk Insurance?

Builder's risk insurance is a specialized property policy that protects buildings and structures during construction or renovation. Unlike standard commercial property insurance, which covers completed buildings, builder's risk coverage applies specifically to projects in progress—from the moment materials arrive on site until construction is finished and the building is ready for occupancy.

In Myrtle Beach, where coastal construction faces additional challenges from weather exposure, builder's risk insurance is essential for protecting your investment. This coverage, sometimes called course of construction insurance, safeguards the physical structure, building materials, and installed fixtures against covered perils while work is underway.

Why Myrtle Beach Businesses Need Builder's Risk Insurance

Construction projects along the Grand Strand face risks that inland builders rarely consider. Builder's risk insurance addresses these exposures head-on:

• Weather exposure is significant. Myrtle Beach construction sites face wind, rain, and tropical weather systems that can damage unfinished structures and exposed materials.


• Standard property policies exclude construction. Your existing commercial property insurance won't cover a building under construction—that gap leaves your entire investment unprotected.


• Theft and vandalism target job sites. Building materials, copper wiring, appliances, and equipment disappear from construction sites across South Carolina every day.


• Lenders require it. Banks and construction lenders in Myrtle Beach typically won't release funds without proof of builder's risk coverage in place.


• Material costs add up fast. Lumber, steel, fixtures, and finishes sitting on site represent thousands—sometimes hundreds of thousands—in financial exposure.

What Does Builder's Risk Insurance Cover?

Builder's risk policies protect the physical property involved in your construction project. Coverage typically includes:

The structure itself. The building under construction is covered from foundation to roof, including all permanent fixtures and installations as they're completed.

Building materials and supplies. Lumber, drywall, roofing materials, windows, doors, and other supplies are covered whether stored on site or in transit to the job location.

Temporary structures. Scaffolding, construction trailers, temporary fencing, and other structures supporting the project can be included in coverage.

Installed fixtures and equipment. HVAC systems, electrical panels, plumbing fixtures, and built-in appliances gain protection once installed in the structure.

Soft costs coverage. Some builder's risk policies in South Carolina include soft costs—expenses like additional interest payments, permit extensions, architect fees, and other costs that result from covered delays.

Standard builder's risk insurance covers named perils including fire, lightning, wind, hail, theft, vandalism, and vehicle damage. Many Myrtle Beach contractors opt for all-risk coverage, which protects against any peril not specifically excluded in the policy.

What Builder's Risk Insurance Does Not Cover

Understanding exclusions helps you avoid surprises. Builder's risk policies typically exclude:

• Employee injuries (covered by workers' compensation)


• Third-party bodily injury or property damage (covered by general liability)


• Faulty workmanship or design defects


• Normal wear and mechanical breakdown


• Earthquake and flood damage (available as separate coverage)


• Penalties and loss of contract

Flood coverage deserves special attention for Myrtle Beach construction projects. Standard builder's risk policies exclude flood damage, but separate flood coverage is available and often advisable given our coastal location.

Who Needs Builder's Risk Insurance in South Carolina?

Several parties involved in construction projects carry builder's risk coverage depending on contract requirements and who holds financial interest in the project:

Property owners. If you're building a new commercial building, warehouse, or retail space in Myrtle Beach, you have the most to lose if something damages the project. Many owners purchase builder's risk coverage directly.

General contractors. GCs often carry builder's risk insurance as part of their standard coverage package, especially for larger projects. Contract language determines whether the owner or contractor is responsible for this coverage.

Real estate developers. Developers building spec homes, condominiums, or commercial properties throughout the Grand Strand need builder's risk protection on every project in their pipeline.

Renovation contractors. Major renovation work—gut rehabs, additions, and structural modifications—requires builder's risk coverage just like new construction. The existing structure and new work both need protection.

How Long Does Builder's Risk Coverage Last?

Builder's risk insurance is project-specific and temporary by design. Policies typically run for the anticipated construction timeline, commonly 3, 6, or 12 months. Coverage begins when construction starts or when materials first arrive on site, depending on policy terms.

If your Myrtle Beach project takes longer than expected—and construction delays happen—most carriers allow policy extensions. Coverage ends when the building receives its certificate of occupancy, when the owner takes possession, or when the policy term expires, whichever comes first.

At project completion, builder's risk coverage transitions to standard commercial property insurance. Moore & Associates can help coordinate this handoff so your building stays protected without gaps or overlaps.

How Much Does Builder's Risk Insurance Cost in South Carolina?

Builder's risk premiums in South Carolina typically run between 1% and 4% of total construction costs, though rates vary based on several factors:

• Project value. Higher construction budgets mean higher premiums, though the rate per dollar often decreases on larger projects.


• Construction type. Frame construction costs more to insure than masonry or fire-resistive buildings.


• Location. Coastal Myrtle Beach projects may see different rates than inland Conway or Georgetown projects due to weather exposure.


• Project duration. Longer construction timelines increase premium costs.


• Coverage scope. All-risk policies cost more than named-peril coverage, and adding soft costs or other endorsements increases premium.


• Security measures. Fencing, lighting, surveillance, and on-site security can reduce theft-related premium charges.

For a $500,000 commercial construction project in Myrtle Beach, builder's risk insurance might run $5,000 to $20,000 depending on these variables. The only way to know your actual cost is to get quotes based on your specific project details.

Builder's Risk vs. General Liability Insurance

Contractors sometimes confuse builder's risk insurance with general liability coverage. These policies serve different purposes:

Builder's risk covers physical damage to the project itself—the structure, materials, and fixtures. It's property insurance for buildings under construction.

General liability covers third-party claims for bodily injury or property damage caused by your operations. If a visitor trips on your job site or debris damages a neighboring property, general liability responds.

Most Myrtle Beach construction projects need both coverages. General liability protects against claims from others, while builder's risk protects the project itself. Neither replaces the other.

Why Work with Moore & Associates for Builder's Risk Insurance

Moore & Associates has served Myrtle Beach businesses since 1979, and we understand the construction risks specific to our coastal market. As an independent insurance agency, we work with multiple carriers to find competitive builder's risk coverage for projects throughout South Carolina.

Our local agents know the Grand Strand construction environment. We can help structure coverage that fits your project timeline, meets lender requirements, and protects your investment from groundbreaking through completion. We also coordinate builder's risk policies with your general liability, workers' compensation, and commercial property coverage to eliminate gaps.

Whether you're a property owner breaking ground on a new building, a general contractor managing multiple job sites, or a developer with projects from North Myrtle Beach to Pawleys Island, Moore & Associates provides the builder's risk expertise you need.

Get a Builder's Risk Insurance Quote in Myrtle Beach, South Carolina

Our builder's risk insurance agents serve Myrtle Beach, South Carolina and surrounding areas including North Myrtle Beach, Atlantic Beach, Conway, Surfside Beach, Murrells Inlet, Litchfield, Pawleys Island, and Georgetown. Contact Moore & Associates today for a free quote.