New Construction Roofing Insurance
We insure new construction roofing contractors who install roofs on new residential builds within the builder and GC framework. No tear-off risk and no occupied-home exposure work in your favor, but builder contractual requirements and construction defect tail exposure demand the right coverage — we connect you with specialist carriers built for new-build roofing.
Key Risks
Construction defect claims represent the dominant long-tail liability, with roof leaks in new homes triggering litigation 3-7 years after installation when homeowners discover mold, rot, or structural damage. Multi-home subdivision exposure means a systematic installation defect (wrong flashing detail, improper valley treatment) can affect dozens of homes simultaneously, creating catastrophic aggregate claim scenarios. Builder indemnification agreements transfer significant liability from the general contractor to the roofing sub. Working on unfinished structures without permanent stairs, guardrails, or stable surfaces elevates WC frequency compared to re-roofing on established homes.
Coverages Needed
Carrier Market
New construction roofing requires specialist programs comfortable with the extended completed operations tail that construction defect exposure creates. Standard roofing programs may exclude or sublimit new construction work because of the multi-home systemic defect potential. Specialist markets with dedicated builder-trade programs understand this class and price accordingly, typically requiring minimum 5-year completed operations tail coverage. Operations working for production builders with established warranty programs may access preferred specialist programs through the builder relationship.
Common Disqualifiers
Any construction defect lawsuit involving systemic failure across multiple homes creates severe placement difficulty regardless of outcome. Operations that cannot demonstrate quality control processes for repetitive installation (random inspection protocols, photo documentation per home) face specialist market resistance. Contractors who work exclusively for a single builder and lose that relationship present concentration risk that specialist programs avoid. Inability to provide 5-year completed operations extended reporting period upon cancellation is a disqualifier for most builder contracts.
Typical Premium Range
New construction roofers installing 50-150 homes annually at $500K-$1.5M revenue typically pay $15,000-$35,000 for GL/WC/Auto/Umbrella, with completed operations coverage representing a larger percentage of GL premium than re-roofing due to the extended tail. Mid-size operations at 150-400 homes generating $1.5M-$4M pay $38,000-$95,000. High-volume operations above 400 homes should expect $100,000-$250,000 with construction defect tail coverage adding 20-30% to GL costs.
Frequently Asked Questions
How long can I be sued for construction defects on new homes I roofed?
In Texas, the statute of repose for construction defects is 10 years from substantial completion, and the statute of limitations is 2 years from discovery of the defect. This means a roof leak discovered 7 years after installation can still generate a claim filed up to year 9. Your completed operations coverage must remain active for the entire period to respond, which is why specialist programs require extended tail coverage and why maintaining continuous coverage without gaps is critical for new construction roofers.
What happens if I install the same defective detail on 50 homes in a subdivision?
A systemic defect across multiple homes can trigger your aggregate limit rather than per-occurrence limit, potentially exhausting coverage. If you installed identical flashing incorrectly on 50 homes and all develop leaks, some specialist programs treat this as 50 occurrences while others treat it as one occurrence with 50 claimants. Understanding how your specific program handles batch claims is essential. Proactive remediation before litigation (fixing the detail across all affected homes) often costs far less than defending 50 individual claims.
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We work with carriers that understand residential roofing and can offer competitive rates for your specialty.
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