A builder’s risk policy is priced based on a number of factors, including:
- Replacement value of the building and construction materials
- Complexity of the project
- Location of the project and crime levels in that area
- Past claims experience of the business and/or homeowner
As an example, for a million-dollar home in Toronto (replacement value of $250,000) undergoing an $80,000 renovation, you can expect to pay around $1,000 for a six-month builder’s risk policy.