Farmer Brown Expands Insurance Access Amid Rising Construction Risks

CHICAGO, IL – April 16, 2026 – In a direct response to rising construction risks and persistent price pressures facing contractors, insurance provider Farmer Brown has announced an expansion of its services, aimed at simplifying access to Builders Risk, Home, and Auto coverage. The move introduces faster quoting and competitive rates, creating a unified insurance pathway for contractors and property owners across all 50 states.

The initiative comes as the construction industry grapples with a complex economic environment. Escalating material costs, supply chain disruptions, and a skilled labor shortage have intensified the financial risks associated with building projects. Against this backdrop, contractors and developers are increasingly seeking clear, affordable, and rapidly accessible insurance solutions to protect their investments and comply with lender requirements.

Navigating a High-Risk Construction Landscape

At the heart of any construction project lies Builders Risk insurance, a specialized policy that serves as the primary financial safeguard for a structure while it is being built. Lenders and project owners almost universally mandate this coverage before work can commence, making it a critical first step. The policy is designed to protect against common on-site perils such as fire, theft of valuable materials, vandalism, and damage from severe weather events. It typically covers not only the structure itself but also materials stored on-site, construction equipment, and temporary facilities like job site trailers.

Cost remains a primary concern for contractors. According to the company, industry data indicates the price for Builders Risk insurance on new construction projects is approximately $300 per $100,000 of coverage, or about $3,000 for a $1 million project. However, for rehabilitation and renovation projects, the risk profile changes, and so does the cost. These projects often see rates closer to $650 per $100,000 in coverage.

John Brown, Founder of Farmer Brown, explained the pricing disparity. “New construction risk grows gradually while the structure rises. Rehab projects carry risk from the first day because a building already stands and remains exposed to loss,” Brown said. This immediate exposure on an existing structure accounts for the higher premium.

While standard policies are robust, contractors must be aware of common exclusions. Perils such as earthquakes, floods, and employee theft typically require separate, specialized policies or endorsements. Understanding these nuances is crucial for ensuring a project is fully protected from start to finish.

The Seamless Transition to Homeownership

The protective umbrella of a Builders Risk policy concludes at a significant milestone: the issuance of a certificate of occupancy. This document marks the official completion of the project and the point where the property is deemed livable. At this juncture, insurance needs shift dramatically from protecting a construction site to protecting a home.

This transition is where Homeowners Insurance takes over, covering the completed structure, the owner's personal belongings, liability for accidents on the property, and additional living expenses if the home becomes uninhabitable due to a covered event. Recognizing this natural handoff, there is a growing trend toward integrating the insurance purchasing process.

“Contractors finish the project, then homeowners need protection for the building they now live in,” Brown noted. “Many clients request affordable homeowners insurance quotes and auto insurance quotes at the same time because bundling policies often produces competitive rates and simpler administration.”

This bundling strategy is attractive to property owners for several reasons. Industry analyses show that combining home and auto policies can result in discounts ranging from 10% to 25%. Beyond cost savings, it offers the convenience of a single point of contact, one renewal date, and a more streamlined administrative experience. However, experts caution consumers to weigh the convenience against potential savings from shopping for individual policies, as bundled deals are not always the absolute cheapest option for every risk profile.

Digital Disruption and the Demand for Speed

Farmer Brown's strategy of offering a unified platform for multiple insurance lines reflects a powerful trend reshaping the entire industry: digitalization. Today’s customers, from seasoned general contractors to first-time homebuyers, have come to expect the speed and transparency that technology provides. The days of waiting days or weeks for an insurance quote are rapidly fading.

Market research indicates that a vast majority of consumers prefer and are more likely to purchase from insurers that offer instant online quoting. This demand for efficiency is particularly acute in the construction sector, where project timelines are tight and delays can be costly. The ability to secure same-day coverage and immediately produce proof of insurance is a significant competitive advantage.

By leveraging a digital platform that works with multiple carriers, firms can quickly compare policy options and pricing, effectively acting as a digital broker to find competitive rates for their clients. This model addresses the core needs articulated by contractors for speed, affordability, and simplicity. “Contractors need fast answers and affordable coverage,” Brown affirmed, highlighting the company's three decades of experience in the sector.

This digital shift is forcing the insurance market to become more responsive and customer-centric. Insurers are increasingly using data analytics and artificial intelligence to refine underwriting, personalize pricing, and streamline claims processing, ultimately creating a more efficient ecosystem for all parties involved.