Insurance costs remain a consideration for developers evaluating taller mass timber buildings, particularly where underwriting information and project-specific risk data are limited. Skanska is leading a new industry initiative intended to provide more standardized information for assessing and managing those risks.
The company received a $294,100 Wood Innovation Grant from the U.S. Forest Service for a 2.5-year project focused on mass timber builders risk insurance and risk mitigation.
The initiative will examine insurance requirements and risk-management practices for mid- and high-rise mass timber construction. Skanska and its project partners will work with insurance carriers and brokers to develop a case study and project guide addressing issues that affect underwriting.
The planned guidance will cover water and fire mitigation measures, builders risk insurance applications and post-occupancy considerations. The team also intends to develop documentation that can give insurers more consistent information when evaluating Type IV-A, Type IV-B and Type IV-C mass timber projects.
Skanska cited industry reports and its project experience indicating that builders risk insurance premiums for mass timber projects can be higher than comparable concrete and steel construction. The company said costs vary according to factors including location, project duration, size, scope and the project team.
The Skanska-led team will use an existing mass timber development in the western United States as a case study. The project is in the final stages of design and permitting and is planned as a large-scale Type IV-B office building.
Project participants include Skanska USA Building, Gallagher Insurance Brokers, Holmes Engineering & Holmes Fire, Mithun, Waugh Thistleton Architects and WoodWorks.
The completed guide is expected to provide owners, designers, contractors, lenders and insurers with information for navigating insurance requirements on mass timber projects. WoodWorks will distribute the final industry guidance.
For developers and contractors considering mass timber, insurance requirements can affect project budgeting and risk planning alongside design, code compliance and construction costs. Standardized project information could give stakeholders a clearer framework for discussing risk with insurers.
The grant is part of the U.S. Forest Service's 2026 Wood Innovation Grants program, which awarded $105.5 million across 177 projects. The program supports expanded wood utilization, including the use of wood in commercial, institutional and multifamily construction.
Source: Skanska.
