Builders risk coverage — also known as course of construction insurance — is a proven way to protect against the unique risks that endanger residential and commercial new construction, remodeling and installation projects. It usually combines standard coverages and optional endorsements to customize coverage for a specific risk and is based on area exposures. (Michael Flippo/Adobe Stock)
Even though the current home construction market might be deemed complicated, make no mistake — the long-term trend in residential construction is onward and upward. One key reason: Construction of more than 5 million homes is needed in the U.S. to meet the demands of those who want to buy a residence this year.
Before diving into the nature of this opportunity, it's important to understand the challenges that accompany it. Total housing starts spiked at 1.6 million in 2021, up 15.6% from 2020, and the highest reported since 2006. Continuing to meet that demand in 2022 was an uphill battle because of multiple competing forces including the lingering effects of the COVID-19 pandemic, tight conditions in the construction labor markets, and a steep increase in inflation and mortgage rates. In fact, these elements actually pulled construction activity back down from 2021 highs. According to Wells Fargo, housing starts were projected to close 2022 at 1.57 million and forecast to fall to 1.43 million in 2023.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
