Builder’s Risk Insurance Policy Georgia

Last updated: November 4, 2026

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"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett

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A builder's risk insurance policy protects a property, and the materials going into it, while the property is being renovated or built. For a Georgia investor working on a single-family house, a duplex or a fourplex, that is the riskiest stretch of the deal. The house is usually empty. Walls, roofs and plumbing are open. Copper, cabinets and appliances sit on site. And in Georgia the house may sit open through spring storm season and the summer and fall hurricane season, when one tornado, hailstorm or tropical system can turn a routine rehab into a total loss.

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This guide covers the builder's risk insurance policy for Georgia investors working on 1 to 4 unit properties: house flips, BRRRR rehabs, value-add work on 2 to 4 unit, and ground-up or infill builds. It shows which policy fits which project, what is covered and what is not, how percentage wind and hail deductibles and coastal hurricane rules change the math, what your lender requires, and how to keep a claim from being cut or denied.

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Insurance disclosure: A portion of the insurance inquiries submitted on OfferMarket are quoted, bound and serviced by OfferMarket Insurance LLC (NPN 20545557), which is licensed in Georgia (license number 247947) and in a number of other states. View the full list at offermarket.us/licenses.

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Key Takeaways

• A builder's risk insurance policy is temporary property coverage for the rehab or build. It does not include liability, so most investors are better served by a fix and flip policy that bundles property, vacancy and liability coverage.
• Tornadoes and hail are the losses that define most Georgia rehabs. A 2008 tornado struck downtown Atlanta itself, and hail hits the metro and north Georgia most springs.
• On the coast, expect a separate hurricane or wind and hail deductible, set as a percentage of the dwelling limit, so a storm claim costs far more out of pocket than a fire or theft claim.
• Do not accept a wind or hail exclusion on a financed deal. Lenders require the coverage, and it is the most likely major Georgia loss.
• Flood is excluded and needs a separate policy. Hurricane Helene flooded inland Georgia in 2024, and Atlanta has seen record rainfall, so flood is not only a coastal problem.
• Price ordinance or law coverage on older homes. Atlanta and Savannah have deep stock of older houses that current code will not let you rebuild as they were.
• Georgia licenses general and residential contractors statewide for work over $2,500, so confirm your contractor holds the right license before the work starts.
• Insure to the right value. Underinsuring reduces every claim payment, not only total losses, and a limit raised without your approval costs you premium for nothing.

Which Policy Fits Your Project

The most common insurance mistake we see on a Georgia rehab is buying the wrong kind of policy for the work. Three questions decide the answer: how big is the scope, does anyone live in the building, and are you renovating or building new?

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• Light cosmetic rehab on a vacant house: Paint, flooring, fixtures and similar work can fit a vacant dwelling policy that allows renovation, or a fix and flip policy with a vacancy endorsement. Watch two things. Vacant dwelling programs often cap the size of the renovation they will accept as a percentage of the property's value, and some leave wind and hail out as standard. A missing wind peril conflicts with lender requirements.

• Substantial or structural rehab: Roof replacement, new systems, moved walls and additions call for coverage built for construction risk. Carriers rate structural work higher than cosmetic work because the existing house is more exposed while walls, roofs and floors are open. Describe the scope accurately on the application, because a cosmetic policy on a structural job is a claim dispute waiting to happen.

• Storm-damaged property bought as is: Many Georgia listings are hail or wind damaged. These need a policy that will accept existing, unrepaired damage, with the understanding that damage present before the policy started is not covered. Document the condition at purchase with dated photos.

• Gut rehab. A full gut is still a renovation, not new construction, because a structure existed when the project began. That matters because the existing house needs to be insured, not only the new work.

• Rehab with tenants in some units: On a duplex, triplex or fourplex, renovation coverage often allows some occupancy but ends once leasing passes a set share of the units, commonly half. A fix and flip policy may not cover active tenants at all, in which case you need a landlord policy or a hybrid policy that accommodates occupancy.

• Ground-up or infill build: New one to four family homes fit builder's risk new construction coverage, written on completed value from the day materials arrive, and built to the current Georgia building code. Add general liability separately.

• The finished rental: Once the property is rehabbed and rented, you no longer need builder's risk. A landlord policy on a dwelling fire special form (DP-3) is the standard fit. Lenders that accept dwelling fire forms typically require the special form.

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Tornado, Hail and Severe Storm Coverage in Georgia

This is the coverage that defines most Georgia rehabs, because severe storms reach every part of the state, not only the coast.

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Severe Storms Reach the Whole State

Georgia is not a coastal-only risk. On March 14, 2008, a tornado struck downtown Atlanta itself, the first on record to do so, damaging the Georgia Dome during a packed basketball tournament, the CNN Center, the Georgia World Congress Center and the Cabbagetown neighborhood, with damage running into the hundreds of millions of dollars (Wikipedia). North and central Georgia see severe thunderstorms, tornadoes and large hail most springs, and the Atlanta metro, where most of the state's flips happen, sits in the middle of that exposure.

Tornado and hail season peaks in spring. The typical flip took about 161 days from purchase to resale in the second quarter of 2026 (ATTOM), so a Georgia rehab that starts in late winter will spend the peak of the season under construction, often with an open roof.

Hail Is the More Frequent Claim

Tornadoes make the news, but hail is the loss Georgia investors file most often. The same storms that spawn tornadoes drop large hail across metro Atlanta and north Georgia, and a single storm can total the roofs across an entire subdivision. On a rehab, a hailstorm that hits before the new roof is on, or just after, is a direct and expensive loss.

How Georgia Wind and Hail Deductibles Work

Many Georgia property policies carry a separate wind and hail deductible, set as a percentage of the dwelling limit rather than a flat dollar amount, and it is most common on coastal and higher-risk properties.

• The deductible is calculated on the dwelling (Coverage A) limit, not on the size of the loss, and typically runs between 1 and 5 percent.
• On a $350,000 dwelling limit, a 2% wind and hail deductible is $7,000. You pay that amount before the policy pays anything on a wind or hail claim.
• The wind and hail deductible replaces your standard deductible for wind-related claims, and Georgia law requires insurers to disclose a percentage deductible clearly in the policy documents.

Find the wind and hail deductible on the declarations page of your actual quote and write it into your budget, because it is the number that decides what a storm claim really costs you. Our team pushes back on an uncapped percentage deductible.

Do Not Accept a Wind or Hail Exclusion on a Financed Deal

Some vacant and renovation policies leave wind and hail out as a standard feature, or offer the peril only as an option. On a financed Georgia deal that will not satisfy your lender. Our lending guidelines do not allow windstorm, hail or named storm exclusions, so read the covered perils as well as the premium.

Secure the Site When Storms Threaten

A house under renovation is a job site, and loose materials become windborne debris that can damage your house and the houses next door, which brings your general liability into the loss. During storm season, keep the roof dried in where the schedule allows, tie down or remove loose materials, secure the dumpster and portable toilet, and move uninstalled materials into a locked, enclosed space. Put storm preparation in your contractor agreement.

Coastal Hurricane and Windstorm Coverage

For properties on the Georgia coast, the hurricane rules change the deal. This section matters most in Savannah and Chatham County, the Golden Isles around Brunswick, and the rest of the coast.

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Coastal Counties Carry a Separate Wind Deductible

On the coast, the percentage wind and hail deductible becomes the rule rather than the exception. Coastal counties such as Chatham, Glynn, Camden, Bryan, Liberty and McIntosh commonly carry a separate wind and hail deductible, set as a percentage of the dwelling limit. On a coastal rehab, size your reserves to that deductible, because it is calculated on the insured value and can run well into five figures on a single storm.

Wind Can Be Excluded Near the Water

On oceanfront and barrier-island properties, such as parts of Tybee Island and St. Simons, some carriers exclude wind damage entirely. When that happens, the coverage comes from one of three places:

• A separate windstorm policy that covers wind damage the main policy leaves out.
• Surplus lines carriers, which cover risks the standard market declines, often at higher cost and with less consumer protection.
• The Georgia Underwriting Association (GUA), the state's FAIR Plan and the last resort for coastal property that cannot get coverage elsewhere. GUA policies tend to cost more and cover less, and the GUA may suspend new applications when the National Hurricane Center is tracking a storm.

On a financed coastal deal, the lender still requires wind coverage, so plan the wind solution before you close.

Bind Before the Storm

When a tropical system threatens, carriers and the GUA stop writing new business. For a coastal closing between June and November, have the policy quoted and ready days in advance, and request any limit increases as soon as your scope grows, not after a storm appears on the forecast.

Flood in Georgia

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Flood Needs a Separate Policy

A builder's risk insurance policy and fix and flip policies exclude flood, and storm surge is treated as flood, so a property in a FEMA special flood hazard area needs a separate flood policy, and lenders require one.

Our guidelines set the flood limit at the greater of $250,000 or the loan balance. NFIP flood policies normally have a 30-day waiting period, but FEMA waives it when the policy is purchased in connection with making, increasing, extending or renewing a loan. Private flood policies can carry shorter waiting periods. Buy the flood policy at loan closing.

Flooding Is Not Only a Coastal Problem

Hurricane Helene made that clear. In September 2024 the storm crossed deep into Georgia, and Atlanta recorded an unprecedented 11.12 inches of rain in 48 hours, breaking a record that had stood since 1886, with creeks and the Chattahoochee River rising above major flood stage (The Atlanta Journal-Constitution). Savannah lost a historic downtown roof to a 76 mph gust and Augusta saw 80 mph winds in the same storm.

For a rehab, three points follow:

• Check the zone, inland too. A property far from the coast can still flood in a heavy rain event. A cash buyer with no lender mandate should still price flood on a property with any history of water.
• Below-grade space is exposed. A finished basement or garden level is the first thing to flood and the most expensive to redo. Flood insurance, not builder's risk, is what responds.
• Plan flood for the rental too. A rental you plan to hold in a special flood hazard area still needs flood insurance under DSCR loan guidelines. Our comparison of landlord and flood insurance explains how the two work together.

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⚡ Get builder's risk, fix and flip and landlord quotes

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Georgia Roofs, Building Code and Ordinance or Law

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The Roof Is the Center of a Georgia Rehab

In a state hit by hail, wind and tropical systems, the roof is the single most important part of the building for insurance. A new, properly installed roof is the strongest thing you can do for both insurability and claim outcomes, and it is also the part of the house a storm is most likely to take. Price the roof carefully, keep the product documentation, and get it dried in before storm season where the schedule allows.

A Fortified Roof Can Lower the Premium

Georgia law requires insurers to offer a rate reduction on the wind portion of a policy when the roof is built or retrofitted to IBHS FORTIFIED Home standards. On a rehab that needs a new roof anyway, building to that standard can lower the cost of insuring the finished rental. On the coast, confirm the wind-borne debris requirements that apply to openings and roofing before you scope the work.

Why Ordinance or Law Coverage Matters

Ordinance or law coverage pays for costs that come from enforcing current building codes after a covered loss. It usually has three parts: the value of the undamaged portion that code forces you to tear down, the cost to demolish it, and the added cost to rebuild to current code. Many policies default to 10 percent of the building limit. On fix and flip quotes our team typically requests 25 percent, and older Georgia housing stock, from Atlanta bungalows to Savannah's historic district, is where it pays off most.

Surplus Lines, the GUA and Carrier Strength in Georgia

Many Georgia fix and flip and vacant home policies come from surplus lines carriers. These are insurers not licensed in Georgia the same way as standard home insurers, but allowed to cover homes that standard carriers turn down, which is often the case for a vacant house under renovation or a coastal property. Two points belong on every quote review.

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• The tax. Georgia charges a surplus lines premium tax of 4% of premium, which the broker remits to the state and typically passes to the policyholder (Locke Lord Surplus Lines Manual). Compare quotes on total cost, not base premium.

• No guaranty fund. If a standard Georgia-licensed insurer fails, the state guaranty association steps in to pay covered claims within limits. Surplus lines policyholders, and GUA policyholders, do not have that same protection. That makes carrier financial strength more important, and it is one reason lenders require an AM Best rating of A- VIII or better. Our guide to AM Best ratings explains what the rating means.

How Much a Builder's Risk Insurance Policy Costs in Georgia

The honest answer is that location and construction drive almost everything, and in Georgia the wind, hail and coastal exposure sits over all of it. Here is the range OfferMarket investors typically see on 1 to 4 unit Georgia deals, by property value and rehab budget:

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These ranges cover the property and renovation coverage. A coastal property, or one with an older roof, prices toward the top of the range, and the percentage wind and hail deductible climbs with the limit. An inland metro Atlanta rehab with a new roof prices toward the bottom.

For context, builder's risk nationally runs about 1 to 4 percent of completed value, and standalone policies carry a minimum premium floor regardless of project size. Because Georgia pricing swings with location, construction and roof age, the only reliable number is a quote on your property. For bundled rehab coverage, see our fix and flip insurance guide.

Refunds When the Project Ends Early

OfferMarket fix and flip premiums are generally refunded pro rata when you cancel early, most often after a sale or after refinancing into a DSCR loan and switching to landlord insurance. Not every builder's risk policy works that way. Some new construction policies are fully earned, which means no refund for unused time. Ask before you bind.

What Factors Influence Builder's Risk Insurance Cost?

A builder's risk insurance policy is priced on the risk the carrier takes on during the project, and that risk shifts with the property, the work and the policy itself.

1. Location

Where the property sits is the single biggest driver of cost, and in Georgia it dominates. Carriers look at:

• Exposure to tornadoes, hail and straight-line winds statewide
• Distance to the coast and hurricane and storm surge exposure
• Flood zone and inland flash-flood exposure
• Distance to a fire station and the local fire protection class
• Crime and vandalism rates on the block

You can't move the house, but you can make sure the quote is built on the right address, protection class and flood zone determination. An error in any of these inflates the premium.

2. Project Type

Carriers rate new construction, installation and remodeling differently, based on how much the existing structure adds to the risk.

• New construction and simple installations usually cost the least, because the timeline is short and there is no existing building to protect.
• Remodeling is rated highest, because an existing structure is exposed to loss the entire time the work is underway.
• A cosmetic remodel rates lower than a structural remodel that moves load-bearing walls, changes the foundation or adds a story.

Describe the scope accurately to the agent. Understating it to shave premium is the fastest way to have a large claim disputed.

3. Construction Type

The materials the house is built from decide how well it survives a fire or storm.

• Masonry and fire-resistive construction rate most favorably.
• Wood frame rates least favorably, and most Georgia housing stock is wood frame.

4. Optional Coverages

The base policy covers the core perils. Every endorsement adds premium, so match them to the project. On a Georgia rehab the options worth discussing are:

• Flood, which is excluded as standard
• Soft costs: extra loan interest, taxes and fees during a covered delay
• Loss of rents, for units with tenants
• Materials in transit and in temporary off-site storage
• Increased cost from change orders, when the scope is likely to grow
• Sewer, drain or sump backup

5. Additional Fees and Taxes

Two policies with similar base premiums can cost very different amounts once fees and taxes are added, and that comes down to the type of carrier.

• Admitted carriers are licensed in Georgia and backed by the state guaranty association if the insurer fails.
• Non-admitted (surplus lines) carriers write many vacant, renovation and coastal policies that admitted carriers decline. They add the 4% surplus lines tax and can add policy fees, and they are not backed by the guaranty fund.

Compare quotes on total cost, not the base premium, and require an AM Best rating of A- VIII or better.

Three More Factors We Weigh for Investors

• Vacancy and timeline. A house that has sat empty for years, or a project expected to run past 12 months, carries more risk and often more premium. A realistic timeline prevents costly mid-project extensions and keeps you from sitting open through storm season.

• The limit. Set it on completed value, without land and without padding. This is where we most often find overpayment, and occasionally a dangerous shortfall that triggers a coinsurance penalty at claim time.

• The deductible. A higher deductible lowers premium, but lenders cap it. Our guidelines cap the property deductible at the lesser of 5 percent or $5,000, so we push back on an uncapped percentage wind and hail deductible that would run above that, such as a straight 5 percent on a high limit.

How to Lower Your Builder's Risk Cost Without Creating a Gap

You can bring the premium down without leaving a hole in the coverage:

• Insure to an accurate completed value, without padding

• Choose the highest deductible your lender accepts and your reserves can absorb, within the 5 percent or $5,000 cap

• Replace an old roof early, and build to the FORTIFIED standard where it earns a wind discount

• Secure the site with locks, lighting and cameras

• Keep the schedule realistic, so you avoid extension charges and stay ahead of the storm season

• Compare quotes line by line, not only on price

  Never save money by dropping vacancy, wind and hail, liability or theft protection. Those gaps turn ordinary Georgia losses into uninsured ones.

What Our Quality Control Catches on Outside Quotes

Every quote that comes through OfferMarket is checked by our QC team against the investor's request and the lender's guidelines before it is bound. These are the problems we flag most often, and the reason we tell investors never to judge a quote by the premium alone.

• The wrong policy type for the project. A landlord policy quoted on a vacant gut rehab, or a vacant renovation program quoted on a property the investor plans to rent right away.

• An uncapped percentage wind and hail deductible. A straight 5 percent wind and hail deductible on a $300,000 limit puts the first $15,000 of a storm claim on you. Our guideline caps the deductible at the lesser of 5 percent or $5,000, so we ask for a flat $5,000 or a percentage capped so it cannot exceed $5,000. On the Georgia coast, this is the catch that costs investors the most.

• A wind or hail exclusion. Some vacant and renovation forms, and some coastal policies, leave the state's most likely major loss uninsured. We do not allow it on a financed deal.

• A dwelling limit the investor did not ask for. Agents sometimes raise or lower the limit without approval. Raising it adds premium for coverage you could never collect. Lowering it can trigger a coinsurance penalty on every claim.

• Functional replacement cost in place of replacement cost. The two look similar on a summary page, but functional replacement cost can pay noticeably less on an older house.

• Land value deducted from the coverage. Some renovation forms limit what they will pay to the investor's actual capital in the project, minus land value. We ask for it to be removed or explained in writing.

• Thin ordinance or law coverage. Many quotes default to 10 percent. On fix and flip policies, we request 25 percent, which matters more in Georgia because of the older housing stock.

• Missing water backup. Sewer and drain backup is a common claim and is often left off unless requested.

• Liability below lender limits. Fix and flip policies need $1,000,000 per occurrence and $2,000,000 aggregate. Landlord policies on our DSCR loans need $500,000 per occurrence.

• Mortgagee and additional insured confused. The lender needs to be the mortgagee on the property coverage and an additional insured on the liability coverage.

• No vacancy endorsement. The most expensive omission of all.

Cases From Our Quality Control Desk

These are real situations our team handled, anonymized and summarized.

• The coastal deductible that changed the math: On a Savannah-area property, a quote came back with a wind and hail deductible set at 5% of the total insured value instead of a flat dollar amount. On a coastal home, that one line can be worth more than a year of premium savings. We asked for a capped deductible and showed the investor both versions side by side. The lesson: on the Georgia coast, compare deductibles in dollars, not percentages.

• A renovation form on a rental request: An investor asked for landlord coverage on a property ready to rent. The quote came back on a vacant and renovation program built for fix and flip projects, with fix and flip liability limits, a flat loss of rent figure that did not match a 12-month standard, and no confirmation of water backup. We asked for a requote on landlord terms and written confirmation of the policy form. The lesson: the policy type has to match what will happen at the property, not what is easiest to quote.

• The limit that grew without approval: An investor asked for a dwelling limit that matched the rebuild cost. The quote came back far higher, because the carrier had raised it to satisfy its own replacement cost estimate, which meant more premium than the investor had planned for. We pushed back, asked the agent to justify the figure and requested pricing on the endorsements the quote left out, including water backup and ordinance or law. The lesson: compare the quoted limit to the one you requested before you look at the price.

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⚡ Have our team check your quote

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What Your Lender Requires

The property is your lender's collateral, so the lender's insurance guidelines shape the policy as much as your own preferences do. This table compares typical requirements during the rehab with the requirements after a refinance into a DSCR loan.

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• The mortgagee clause: List the lender's exact name and address followed by ISAOA/ATIMA. OfferMarket's clause reads OfferMarket Capital LLC ISAOA/ATIMA, 627 S Hanover St, Baltimore, MD 21230. More detail is in our mortgagee clause glossary entry.

• Proof of insurance. OfferMarket requires an ACORD form, plus certificates and paid receipts, at least 24 hours before closing, and final policy documents within 60 days after closing.

• Carrier strength. An AM Best rating of A- falls in the Excellent category, and Financial Size Category VIII means policyholder surplus of $100 million to $250 million. This matters more in Georgia, where many renovation and coastal policies are written in the surplus lines market with no guaranty fund backstop.

Why Financing and Insurance in One Place Matters

Most closing delays caused by insurance come down to a mismatch between the policy and the loan: a wind or hail exclusion, a deductible the lender will not accept, a liability limit too low, a flood policy bound too late or a mortgagee clause with the wrong name. When you use OfferMarket Capital for the loan and OfferMarket Insurance for the coverage, the same team that sets the loan requirements checks the policy against them before closing, not the day before.

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What a Builder's Risk Insurance Policy Covers on a 1 to 4 Unit Project

Coverage depends on the policy form, so treat this section as a list of things to confirm rather than a promise of what any one policy includes.

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The House and the Work

On a renovation, two values are at risk: the house you bought and the work you are adding. Not every builder's risk insurance policy insures both.

For an investor, the loss that matters most is a tornado, hail or fire that takes the whole house, not only the new kitchen. Confirm in writing that the existing structure is insured from the day you close.

Materials on Site, in Storage and in Transit

Building materials are often the easiest thing to lose. OfferMarket's renovation coverage insures the structure, materials and equipment on the premises or within 100 feet, and the foundation.

If materials will be stored off site, ask for coverage at that location by name. A pallet of shingles or a staged HVAC unit sitting at another address is outside a site-only policy.

The Causes of Loss

Residential builder's risk commonly covers fire and lightning, wind and hail (when included), theft, vandalism, arson and collapse. Many policies add extensions such as debris removal, materials in transit, sewer or drain backup and ordinance or law, each with its own smaller limit. Ask for the sublimit on each one, especially debris removal, which is expensive after a tornado.

Theft: The Claim Investors Misunderstand Most

Theft is one of the most frequent construction claims, and residential job sites have predictable targets: copper wiring and pipe, appliances, HVAC condensers and fixtures.

Some policies exclude theft of building materials that are not yet attached to the structure, which means the new range or the condenser sitting in the garage may not be covered until installed. Before materials arrive, ask three questions:

• Is theft of uninstalled materials and appliances covered on site, in storage and in transit?
• Is there a sublimit?
• What security conditions apply? Then schedule deliveries as close to installation as your contractor allows.

Ordinance or Law for Older Homes

When a damaged older home is rebuilt, code can require upgrades to undamaged parts of the house. Ordinance or law coverage pays for the value of the undamaged portion code forces you to tear down, the cost to demolish it, and the increased cost to rebuild to code. On fix and flip quotes, our standard is 25% of the building limit. Many policies default to 10 percent, which can fall short on an older Georgia home.

What a Builder's Risk Insurance Policy Does Not Cover

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• Flood and storm surge. Both are excluded. Rising water, including inland flash flooding from a tropical system, is a flood claim, not a wind claim, and needs a separate policy. In a coastal storm, wind and flood can damage the same house, and each policy pays its own share.

• Pre-existing damage. A hail or wind-damaged house bought as is will not be covered for damage that existed before the policy started. Dated photos at closing protect you.

• Faulty workmanship and defective materials. Builder's risk is not a warranty. Policies generally exclude the cost to correct faulty work, though a policy with an ensuing loss provision may cover resulting damage to other property.

• Wear and tear, rot, pests and mold. Old plumbing, termite damage and gradual deterioration are maintenance problems. Termites and mold are a real concern in Georgia's warm, humid climate, and mold coverage is often excluded or capped.

• Frozen pipes in a vacant, unheated house. North Georgia sees hard freezes. On a vacant building, the resulting water damage is commonly covered only if you kept heat on or shut off and drained the water system.

• Employee theft and worker injuries. Theft by the crew and injuries to workers are excluded. Workers belong under the contractor's workers' compensation.

• Liability. A standalone builder's risk insurance policy does not cover injuries to other people. The liability section below explains how to fill this gap.

• Land and landscaping. Land, trees, shrubs and walkways are generally not covered, and land value should never be part of your limit.

  One more gap is a belief rather than an exclusion. Some investors assume a general liability policy will cover damage to the project itself. It will not. Liability insurance covers what you owe other people. Builder's risk covers the project. A rehab needs both.

Vacancy: The Empty-House Problem

Most flips start with a vacant house, and standard policies often exclude or void coverage on unoccupied homes. More investor claims go wrong here than anywhere else.

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How Vacancy Clauses Work on Residential Policies

In the standard homeowners form, coverage for glass breakage and vandalism ends once the dwelling has been vacant for more than 60 consecutive days. Dwelling policies work much the same way, and some older forms use 30 days.

Why "Under Renovation" May Not Protect You

Many policies say a home under construction is not considered vacant, but renovation can be treated differently. Gutting a home, with the contents removed and the occupants gone, can make it vacant, and visiting to check on progress does not change that.

Merlin Law Group states courts look for substantial, continuous construction activity, measured by how many workers were on the project and how much time they spent in the building. Even builder's risk can tighten when work stops, limiting coverage to named perils after a set period with no activity.

How Rehabs Drift Into Vacancy

The trap is rarely a decision to abandon a project. It is ordinary dead time: waiting on permits, a draw, a missing contractor or a buyer. A tornado or hailstorm that halts work for weeks can push a house past a vacancy threshold while no one watches the calendar.

The Fix

Disclose vacancy when you apply, and make sure the policy carries a vacant property endorsement or vacancy permit for the whole rehab period. Our lending guidelines require borrowers to notify the carrier when a property becomes vacant or unoccupied and to obtain a vacancy permit for the entire vacancy period. Back the endorsement with records: a dated work log, contractor invoices, inspection reports and weekly photos.

Liability on a Rehab

A builder's risk insurance policy does not cover workplace injuries or liability. On an investor rehab, the liability exposure often outweighs the property exposure, which is why we pair renovation coverage with general liability on every fix and flip quote.

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• Who can get hurt. Contractors and their crews, inspectors, appraisers, buyers' agents, neighbors and trespassers.

• Roofing crews and work at height. Hail and wind make roofing the most common Georgia trade, and a fall from a roof is a serious liability exposure. Confirm your roofer carries general liability and workers' compensation.

• Children and open job sites. Under the attractive nuisance doctrine, landowners may owe trespassing children a heightened duty when a dangerous condition is likely to attract them (Cornell Legal Information Institute). Open foundations and unsecured stairs are exactly that kind of condition. Fence and lock the site.

• What lenders require. Fix and flip lenders commonly require general liability of $1,000,000 per occurrence and $2,000,000 aggregate on an occurrence basis, with the lender as additional insured.

• Your contractors' coverage. Collect certificates of general liability and workers' compensation before work begins, and ask your contractor to add you as an additional insured by endorsement. If a contractor carries no coverage, the owner can become the target.

Contractor Licensing in Georgia

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Unlike some states, Georgia licenses general and residential contractors statewide through the State Licensing Board for Residential and General Contractors, and it matters to an investor because an unlicensed contractor on a job that required a license is a legal and insurance problem (House Call Pro).

• The $2,500 threshold. A state contractor license is required for construction work valued over $2,500, measured by the higher of the work's value or the contractor's compensation, and a job cannot be split into smaller pieces to stay under the line.

• Residential-Basic covers detached one and two family homes and townhouses, and requires $300,000 in general liability insurance.

• Residential-Light Commercial adds multifamily and light commercial, and requires $500,000 in general liability.

• General Contractor covers all building types, and requires a $150,000 net worth shown by a CPA statement plus $500,000 in general liability.

• Specialty trades. Electrical, plumbing and HVAC are licensed separately, regardless of the $2,500 threshold.

  Confirm your contractor holds the right license class for your project and carries the general liability that comes with it, because that liability is what stands behind an injury or a mistake on your job.

How to Set the Right Limit

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Insure to Completed Value

Builder's risk limits are based on the estimated completed value of the project. When the limit falls short, many forms reduce claim payments in proportion, using a simple formula: insurance carried divided by insurance required, multiplied by the loss. If a policy requires insurance equal to 80% of value and you carry 60 percent, you collect 75% of each loss and absorb the rest, even on a small claim.

Our Completed Value Worksheet

Use these lines to build the number before you request a quote:

• Rebuild cost of the existing structure. Not the purchase price and not the land.
• Full rehab budget. Materials and labor, not only materials.
• Contractor overhead and profit. These can represent up to 20 percent of completed value.
• Georgia code costs. Current-code upgrades on an older home, including the roof, and coastal wind-borne debris requirements where they apply.
• Flood compliance. If the property sits in a flood zone, include any required work.
• Minus land. Land is never part of the insured value, and in Buckhead or on the coast land can be most of the market value.

ARV Is Not Replacement Cost

Investors think in after-repair value. Insurers think in rebuilding cost. ARV is a market value that includes the land and the neighborhood. Replacement cost is what it would take to rebuild the structure at current construction prices.

Use the ARV calculator for market value, and ask for a replacement cost estimate on the structure itself.

When the Loan Sets the Limit

Our fix and flip guidelines set the property limit at replacement cost, taken from the appraisal or a replacement cost estimator, or at the loan amount. If the loan amount is below replacement cost, the policy must be written on an agreed value basis or carry zero coinsurance.

When Coverage Starts and Ends

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Starting Coverage

Bind coverage before you close, because your lender, or your title company on a cash purchase, will require proof of insurance. On the coast, bind before a storm forms, because carriers and the Georgia Underwriting Association suspend new business when a system threatens. On new construction, have builder's risk in place by the time materials are delivered.

Buying Coverage in the Middle of a Rehab

You can often buy coverage after work has started, but you must disclose the work already done, and some insurers require an inspection or limit certain coverages. Expect more questions the further along the project is.

What Ends Coverage

Builder's risk ends automatically, often without a reminder, when a termination trigger occurs:

• Ownership transfers to the buyer.
• A set period passes after construction is complete.
• The property is occupied or put to its intended use.
• A single-family home is leased or rented.
• A set share of the units in a 2 to 4 unit building is leased.
• Permanent property insurance takes effect.
• Your interest in the property ends, or you abandon the project.
• The policy term expires.

The Early Tenant

On a BRRRR project, a tenant moving in can end builder's risk on the spot. On a duplex or fourplex, leasing half the units can do the same. Bind the landlord policy first.

Handing Off to Landlord Insurance

If you keep the property, put the landlord policy in effect before you cancel the old one, send the new policy details to your servicer, and send the servicer's information to the new carrier. If you sell, cancel after the transfer closes and request your pro rata refund.

How to Handle a Claim in Georgia

The NAIC's claims guidance lays out the core steps, and a few points matter in Georgia.

• Report promptly and in writing. After a tornado, hailstorm or tropical system, report the claim as soon as it is safe, even if the full estimate comes later. Document the damage with dated photos before temporary repairs.

• Know your wind and hail deductible. On a storm loss, expect the percentage wind and hail deductible, not the smaller all other perils deductible, to come off the top.

• Separate wind from flood. On a coastal loss, document wind and flood damage separately in your notes, because two policies may respond and each pays its own share.

• Notify your lender. The lender is usually named on the claim check, so bring it in early.

Georgia Playbooks by Market and Strategy

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Metro Atlanta: The Core Flip Market

Metro Atlanta, from Buckhead and Midtown out to Marietta, Decatur, Sandy Springs and Gwinnett, is where most Georgia flips happen. The defining risks are tornado, hail and the occasional tropical remnant, so price the wind and hail deductible, get the roof dried in before spring, and carry ordinance or law at 25 percent on the older bungalow and ranch stock. Confirm your contractor's state license class for the project.

Savannah and the Coast

Savannah, the Golden Isles around Brunswick, and the barrier islands combine hurricane wind with surge and flood. Price the percentage wind deductible on the full limit, plan the wind solution early where a carrier excludes it, and bind before storm season. Savannah's historic district adds ordinance or law and preservation considerations to older buildings.

Augusta, Columbus and Macon

These mid-size markets offer lower acquisition prices and steady rental demand. Hail and severe storms are the recurring loss, the roof is the center of the deal, and ordinance or law matters on the older stock. Price the local fire protection class, which can be higher outside the city core.

Athens and College-Town Rentals

Athens and other college towns carry steady rental demand, which makes the BRRRR exit attractive. Watch vacancy during summer gaps, and keep wind, hail and liability coverage in place through the hold.

Ground-Up and Infill Builds

New construction is where standalone builder's risk fits best. Insure to full completed value under the current code, put coverage in place before materials arrive and add general liability separately. Estimate financing with the construction loan calculator and our ground-up construction loan page.

BRRRR in Georgia

Use the rehab to set up the rental: a new roof, updated systems and a secured site before you shop the landlord policy. Get the landlord and flood quotes through OfferMarket, then run the refinance math with the DSCR calculator. Our BRRRR method guide covers the full strategy.

The Rental Exit: A Cheaper Georgia Landlord Policy

The rehab is the best chance to lower the cost of insuring the finished rental. Features you add while the roof and walls are open pay off in the landlord premium.

• Put on a new roof, built to standard. In a hail and hurricane state, roof age and condition drive the landlord premium more than almost anything else, and a FORTIFIED roof can earn a wind discount.

• Document everything. Keep permits, product records and photos of the completed work. An insurer rating the finished rental rewards a building that is demonstrably updated.

• Bind the landlord policy before the tenant moves in. Occupancy can end builder's risk, so put the landlord insurance policy in place first, then cancel the rehab policy and request any pro rata refund. Our DWG-3 policy guide explains how landlord property coverage works.

What a Builder's Risk Insurance Policy Is

A builder's risk insurance policy, also called course of construction insurance, is property insurance for a building while it is being built or renovated. It covers the structure, the materials already installed and the materials waiting to be installed against losses such as fire, wind, theft and vandalism. It is temporary by design. A policy exists for one project and ends when that project ends.

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Most builder's risk policies are written on an all-risk (open perils) basis, which means they cover any cause of loss the policy does not specifically exclude. Many also cover materials in transit and in off-site storage. There is no single standard builder's risk form, though. Two policies with the same name can respond very differently to the same loss, which is why our team reads the actual wording on every quote rather than the summary page. In Georgia, the wording that matters most is the wind and hail coverage and its deductible.

Georgia investors usually buy builder's risk in one of two ways:

• A standalone builder's risk insurance policy insures the house and materials during the work. It does not cover injuries to other people or liability for damage to their property, so it needs a separate general liability policy beside it.

• A fix and flip policy, also called renovation insurance, combines property coverage, builder's risk features, a vacant property endorsement and general liability in one policy, with optional ordinance or law and loss of rents. For most investor rehabs, this is the better fit.

Why a Homeowners Policy Does Not Fit a Rehab

A homeowners policy is built for an owner living in a finished home. It generally does not contemplate a renovation, its additional coverages are sized for an occupied house, and it is the wrong form for an investment property in the first place. Add vacancy, open walls and stored materials, and a homeowners policy can fail exactly when you need it.

Why the Rehab Phase Is So Risky in Georgia

Storm season overlaps most project timelines. Spring brings tornadoes and hail statewide, and summer and fall bring tropical systems to the coast and inland. With the typical flip running about 161 days, a Georgia rehab is almost always under construction during one of those windows.

The roof is exposed when it matters most. A house mid-rehab often has an old roof, a partial roof or an open deck exactly when hail and wind are most likely. Flood reaches inland. Hurricane Helene showed that a tropical system can flood Atlanta and central Georgia, not only the coast.

Terms You Will See on a Policy

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• Completed value. The expected value of the finished project. Builder's risk limits are usually set on this number from day one, even though the house is worth less while the work is underway.

• Existing structure coverage. Coverage for the house you bought, as opposed to the new work. Some renovation policies insure only the renovation value unless you add the existing structure.

• Named insured and additional insured. The named insured owns the policy, usually the LLC or person on title. An additional insured is added to someone else's policy, such as your lender on your liability policy or you on your contractor's.

• Mortgagee clause and ISAOA/ATIMA. The mortgagee clause protects your lender's financial interest. ISAOA means "its successors and/or assigns," and ATIMA means "as their interests may appear." A mortgagee and an additional insured are not the same thing, and lenders usually want to be named both ways.

• Wind and hail deductible. A separate, usually percentage-based deductible that applies to wind and hail losses, as explained above. On the Georgia coast it is the deductible that decides what a storm really costs you.

• Replacement cost and actual cash value. Replacement cost pays to repair or rebuild without deducting depreciation. Actual cash value subtracts depreciation, so an older roof or system pays out far less. On roofs especially, some carriers settle hail claims on an actual cash value basis.

• Functional replacement cost. A settlement basis that pays to repair with less costly materials that perform the same function. It can pay noticeably less on an older house.

• Coinsurance and the 80 percent rule. Many property policies require you to insure a minimum share of value, often 80 percent. Insure for less, and the policy reduces every claim payment in proportion.

• Vacancy permit. An endorsement that restores coverage a vacancy clause would otherwise take away.

• Ensuing loss. Damage that results from an excluded cause. A policy may exclude faulty workmanship but cover the water damage a bad plumbing joint causes.

Builder's Risk Insurance Policy Guidelines

Below are common builder's risk insurance policy guidelines for fix and flip loans (otherwise known as hard money loans). These coverage limits are generally considered best practice from a risk management perspective.

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Property Coverage

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General Liability Coverage

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Flood Insurance

If the property is in a FEMA special flood hazard area, your lender may require flood insurance.

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Additional Details

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The OfferMarket Builder's Risk Recipe

Our insurance team uses this seven-step method to structure renovation coverage for 1 to 4 unit Georgia investors.

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1. Classify the project accurately. Cosmetic rehab, structural remodel, gut rehab or ground-up build. Disclose work already started, the vacancy history, any tenants in place and the expected timeline.
2. Set the limit on completed value. Start from the rebuilding cost of the finished house and your lender's guideline. Include contractor overhead and profit and Georgia code costs, and exclude land.
3. Confirm wind and hail and the deductible. No wind or hail exclusion on a financed deal, and reserves sized to the percentage deductible, especially on the coast.
4. Close the vacancy gap. Confirm a vacant property endorsement or vacancy permit for the full rehab period.
5. Add the Georgia coverages. Ordinance or law at 25 percent, and flood where needed, inland as well as on the coast.
6. Add general liability at lender limits. $1,000,000 per occurrence and $2,000,000 aggregate on an occurrence basis, with the lender as additional insured, and certificates from every licensed contractor.
7. Bind early and plan the exit. Bind before closing and before any coastal storm watch, use the exact mortgagee clause with ISAOA/ATIMA, and line up the landlord policy before the tenant moves in.

Georgia Builder's Risk Checklist

• ✅ Policy bound and proof of insurance delivered before closing, and before any coastal storm watch
• ✅ Policy type matches the scope: cosmetic, structural, gut rehab or ground-up
• ✅ Wind and hail included, with no windstorm, hail or named storm exclusion
• ✅ Wind and hail deductible known, and cash reserves sized to it
• ✅ Limit set on completed value: land excluded, roof and code costs included
• ✅ Existing house insured, not only the renovation
• ✅ Vacant property endorsement or vacancy permit for the full rehab period
• ✅ Flood zone checked, inland too; flood policy bound at closing if required
• ✅ Coastal wind solution planned where a carrier excludes wind (windstorm policy, surplus lines or GUA)
• ✅ Ordinance or law at 25 percent on older homes
• ✅ Theft of uninstalled materials covered, with sublimits known
• ✅ General liability at lender limits, lender as additional insured
• ✅ Surplus lines tax and carrier rating reviewed
• ✅ Contractor holds the correct Georgia state license class for the project
• ✅ Mortgagee clause exact, with ISAOA/ATIMA; named insured matches title
• ✅ New roof and landlord policy lined up for the exit

How OfferMarket Insurance Works in Georgia

OfferMarket Insurance LLC is a licensed insurance agency (NPN 20545557) built for 1 to 4 unit residential real estate investors, and it is licensed in Georgia (license number 247947). We quote, bind and service coverage, so you work with the people who place and stand behind your policy rather than a lead form that hands you off. View our license list at offermarket.us/licenses.

You submit your property once, and our team quality-checks each quote against your request and your lender's guidelines before you bind: the policy type, the limit, the settlement basis, the wind and hail deductible, ordinance or law, water backup, liability and the mortgagee clause. We coordinate the quotes, the certificates for closing and your lender, and when the property is ready to rent, we help you move to landlord insurance without a gap.

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Frequently Asked Questions

Do I Need a Builder's Risk Insurance Policy for a Flip in Georgia?

If the house is vacant and under renovation, a homeowners policy is the wrong fit, and lenders require property and liability coverage before closing. A fix and flip policy that includes builder's risk features, a vacancy provision, wind and hail coverage and general liability is the common solution.

Does a Builder's Risk Insurance Policy Cover Tornado and Hail Damage in Georgia?

It can, if wind and hail are included. Some vacant and renovation policies exclude the peril or offer it only as an option, and lenders require it. A separate percentage wind and hail deductible usually applies, especially on the coast.

What Is the Wind and Hail Deductible on a Georgia Policy?

On coastal and higher-risk properties, Georgia policies often use a percentage of the dwelling limit, commonly 1 to 5 percent. On a $350,000 limit, a 2 percent deductible is $7,000. Our guideline caps it at the lesser of 5 percent or $5,000.

Does a Builder's Risk Insurance Policy Cover Flood in Georgia?

No. Flood, including inland flash flooding and coastal storm surge, requires a separate policy. In a special flood hazard area, lenders require it, and buying it at loan closing avoids the 30-day NFIP waiting period.

What About Coastal Properties Where Wind Is Excluded?

On some oceanfront and barrier-island homes, a carrier may exclude wind. Coverage then comes from a separate windstorm policy, a surplus lines carrier, or the Georgia Underwriting Association, the state FAIR Plan. Plan the wind solution before you close on a financed coastal deal.

Do I Need a Licensed Contractor in Georgia?

For construction work valued over $2,500, yes. Georgia licenses general and residential contractors statewide, and electrical, plumbing and HVAC trades are licensed separately. Confirm your contractor holds the right class for your project.

How Much Does a Builder's Risk Insurance Policy Cost in Georgia?

It depends on the property, its location and the roof. As a guide, OfferMarket investors see roughly $1,100 to $2,200 a year on a $150,000 property with a $50,000 rehab, $1,600 to $2,700 on a $300,000 property, and $2,100 to $3,600 on a $500,000 property. Nationally, builder's risk runs about 1 to 4 percent of completed value.

Is OfferMarket Licensed in Georgia?

Yes. OfferMarket Insurance LLC (NPN 20545557) is licensed in Georgia (license number 247947) and in a number of other states, and it quotes, binds and services coverage. See the full list on our licenses page.

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Protect and Grow Your Portfolio With OfferMarket

A builder's risk insurance policy is a line of defense for the most exposed months of any deal, and in Georgia it has to work alongside the storm calendar. Between percentage wind and hail deductibles, tornado and hail exposure statewide, coastal hurricane rules, inland flooding and older roofs, experienced Georgia investors know that protecting capital during a rehab matters as much as the profit at the end of it.

OfferMarket's insurance platform works for a first flip in Augusta and for a pipeline of rehabs across metro Atlanta and the coast. We check the coverage, the deductibles and the lender requirements so that you can focus on the project.

Protect your capital. Protect your reputation. Protect your future in Georgia real estate.

OfferMarket serves Georgia investors at every stage, from a first rehab in Macon to BRRRR rentals in Athens and infill new construction in metro Atlanta.

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