Builders Mutual Insurance Company Review: Coverage, Claims, and Customer Satisfaction

Founded in 1984 and based in Raleigh, North Carolina, Builders Mutual Insurance Company provides property and casualty insurance for residential builders and contractors. When considering Builders Mutual for your insurance needs, it helps to understand the company’s reputation, financial strength, coverage options, claims process, and customer satisfaction ratings. This comprehensive review provides an in-depth look at Builders Mutual Insurance Company.

Builders Mutual Overview

Builders Mutual Insurance Company focuses solely on providing insurance policies to construction industry professionals. Some key facts about the insurer:

  • Specializes in builders risk, general liability, and other construction insurance products

  • Insures over 25,000 contractor and builder customers nationwide

  • Has an A+ financial strength rating from AM Best

  • Is not accredited by the Better Business Bureau

  • Operates regional claims centers and sales offices across the U.S.

  • Employs around 275 people

  • Brought in $153 million in direct premiums written in 2021

While Builders Mutual writes predominantly commercial policies, they do offer some personal lines such as homeowners insurance tailored for builders. The company focuses on delivering specialized products and localized expertise to construction businesses.

Builders Mutual Insurance Products

Builders Mutual offers a range of insurance solutions targeted specifically at residential builders and contractors. Here are some of their key coverage options:

Builders Risk Insurance

  • Covers homes under construction, building materials, equipment, supplies, and tools against standard risks like fire, theft, vandalism, and severe weather. Optional coverages are also available.

General Liability Insurance

  • Protects against third-party bodily injury and property damage claims arising from your construction operations. Minimum limits start at $500,000.

Commercial Auto Insurance

  • Covers company vehicles against collision, liability claims, and other standard auto insurance risks.

Umbrella Liability

  • Provides additional liability limits above your existing policies to protect assets from major claims.

Surety Bonds

  • Performance and payment bonds meet construction project requirements and provide security to property owners.

Workers’ Compensation

  • Covers medical expenses and lost wages for employees injured on the job per state regulations.

In addition to these standard policies, Builders Mutual offers tailored packages and coverages specific to builders’ unique risks. An independent insurance agent can provide guidance on your optimal insurance mix.

Claims Process and Customer Service

Understanding how Builders Mutual handles claims and supports policyholders is key to assessing customer satisfaction. Here are a few insights into their claims and service:

  • Claims can be reported easily 24/7 through their website or Claims Center.

  • Builders Mutual has a network of in-house claims adjusters around the country to provide localized assistance.

  • The insurer promises to directly pay contractors for repairs rather than issuing checks to homeowners for faster claims resolution.

  • Customers can access policy documents, pay their bill, and manage their account through the online customer portal.

  • Builders Mutual has received some complaints related to claim denials and lack of communication during the claims process.

  • The insurer encourages reaching out to your independent agent as the first point of contact for support.

Ratings and Reviews

Here’s an overview of Builders Mutual’s financial strength, customer service ratings, and online reviews:

  • A+ (Superior) financial strength rating from AM Best – This indicates low credit risk and ability to pay out claims.

  • 1.5 out of 5 rating on the Better Business Bureau – The BBB site shows 6 total complaints against the company in the past 3 years.

  • 2.0 out of 5 rating on Trustpilot based on 10 reviews – Positive reviews praise good service while negatives cite denial and delays handling claims.

  • 3.9 out of 5 rating on Glassdoor – Employees cite generous time off, strong workplace culture, and good work/life balance.

While reviews are somewhat mixed, Builders Mutual maintains solid financials and specialized expertise serving the construction space.

The Claims Process at Builders Mutual

Understanding how Builders Mutual handles claims can provide insight into customer satisfaction with the process:

Reporting a Claim

  • Claims can be reported through the Builders Mutual website, mobile app, email, phone, fax, or mail.

  • Contact information for your adjuster will be provided to check status or ask questions.

Investigating the Claim

  • An adjuster will be assigned and contact you within 24 hours to investigate by inspecting damages, requesting documentation, and interviewing involved parties.

  • For liability claims, the adjuster determines if you were legally negligent resulting in damages to a third party.

Determining Coverage

  • The adjuster reviews the claim circumstances against your policy terms, limitations, and exclusions to make a coverage determination.

  • If needed, the adjuster may engage internal underwriting staff to assist with coverage review.

Resolving the Claim

  • Once deemed covered, Builders Mutual will make payments either to you directly or to third parties (e.g. homeowner) within applicable timeframes.

  • For denied claims if coverage cannot be verified, a formal denial letter is provided.

Closing the Claim

  • After all payments are issued and repairs completed, the adjuster will close the claim.

  • You can appeal a denial through your state’s department of insurance if you disagree with the outcome.

##Customer Reviews of Claims Experiences

Understanding customer claims experiences can further demonstrate Builders Mutual’s service. Here are excerpts from online reviews related to the claims process:

Positive Reviews

  • “I had a major roof leak claim that was handled quickly and paid fairly.”

  • “The claims reps efficiently scheduled contractors for repairs and kept me updated throughout the process.”

  • “My flooded basement claim was approved and paid out within a week after the adjuster’s inspection.”

Negative Reviews

  • “Communication was poor throughout the claims process. I had to constantly follow up for status updates.”

  • “The adjuster denied my sizable water damage claim citing insufficient evidence of a covered cause.”

  • “It took months of back and forth to get a leaking pipe claim approved and repairs reimbursed.”

Is Builders Mutual Insurance Right for You?

When weighing Builders Mutual for your construction business insurance needs, consider these key factors:


  • Specialized construction insurance expertise and coverages

-Localized claims support from U.S.-based adjusters

-Strong financial strength backing claims payouts

-Streamlined online account management


  • Mixed customer claims experiences and reviews

  • Complaints about lack of communication on claims

  • Limited policy options beyond core construction coverages

  • BBB accreditation not obtained

For construction-focused policies and specialty coverages, Builders Mutual is a leading choice. But be sure to vet local agents thoroughly and discuss claims experiences before purchasing a policy.

Top Alternatives to Builders Mutual

If you want to compare options before choosing Builders Mutual, some top insurers that offer construction policies include:

Cincinnati Insurance

  • Offers builders risk, general liability, contractor bonds, and other construction policies

  • Holds an A+ rating from AM Best and A+ rating on the BBB

  • Provides local agent support and 24/7 claims service

Next Insurance

  • Digital insurance platform for contractors and builders

  • Coverage offered for liability, property, equipment, workers’ comp, and more

  • Policies start at $47/month with instant online quotes

The Hartford

  • Flexible business owner’s policy (BOP) options for contractors

  • Coverage endorsements for unique construction risks

  • Highly rated for claims process and customer service

State Farm

  • Competitive pricing and bundling discounts

  • Streamlined contractor general liability and commercial auto

  • National insurer with strong financial strength

Regardless of which insurance carrier you select, always make sure to work with a reputable, independent insurance agent that can advocate for your business insurance needs. With an ideal policy from a financially stable provider, you can protect your construction firm against risks and liabilities.

Builders Mutual Insurance Company: A Culture of Safety


What is the builders mutual am best rating?

Rating (Rating Category):
A (Excellent)
Outlook (or Implication):
Effective Date:
May 04, 2023
Initial Rating Date:
December 15, 1997

Who is the CEO of Builders Mutual?

Mike Gerber – Builders Mutual Insurance Company | LinkedIn.

What is the NAIC number for builders mutual insurance company?

Builders Insurance (a Mutual Captive Company) – NAIC #10704, AM Best Company #012026 – is the flagship insuring entity and parent company of Builders.

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