Building or renovating in Florida is exciting, but it also brings a unique set of risks. Between hurricanes, fire, supply delays, and the general unpredictability of construction, a lot can happen before a project is finished. Builder’s Risk insurance steps in to protect your investment during this vulnerable phase.
At Insurance Resources, we regularly help homeowners, contractors, and investors across Tampa Bay secure the right coverage for their projects. One of the first questions we get is, “What exactly does Builder’s Risk cover, and what information do you need to quote it?”
Below is a clear breakdown from an insurance agent’s point of view.
What Is Builder’s Risk Insurance?
Builder’s Risk insurance, sometimes called Course of Construction insurance, is a temporary property policy that protects a structure while it is being built, repaired, or renovated. The policy typically includes coverage for fire, lightning, water damage, vandalism, wind, and other perils. A standard homeowners insurance or property policy will not cover a building that is under construction, especially one that is vacant, which is why this policy is essential.
Builder’s Risk can cover:
- The structure during construction
• Materials and supplies on site
• Materials in transit or temporarily stored
• Fixtures waiting to be installed
• Temporary structures such as fencing or scaffolding
Policies usually run for 3, 6, 9, 12, 18, or 24 months and can often be extended if needed.
Why Builder’s Risk Is Especially Important in Florida
Florida projects face risks that are not as common elsewhere. These include exposure to hurricanes and tropical storms, high theft rates for materials, and water or wind damage while the home is open. Strict permitting and inspection timelines can also increase how long a structure is exposed. Because of these factors, most lenders require Builder’s Risk coverage before work starts.
What Builder’s Risk Does Not Cover
It is also helpful to understand the limitations of Builder’s Risk coverage. Builder’s Risk does not replace:
- Premises Liability, which protects the owner if someone is injured on the property during construction
• General Liability coverage for the contractor
• Workers Compensation for the contractor
• Coverage for tools and contractor equipment
• Faulty workmanship (although resulting damage may be considered)
The policy is meant to cover the structure and materials during construction and ends once the project is complete.
What You Need to Obtain a Builder’s Risk Quote in Florida
Getting a quote is usually straightforward, but carriers need accurate details to offer the right pricing and coverage. Providing complete information helps us shop the market more effectively.
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Basic Project Information
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- Project address
- Type of work such as new construction, renovation, addition, or rebuild
- Construction type such as frame, block, steel, or poured concrete
- Square footage and number of stories
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Project Timeline
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- Expected start and completion dates
- Whether any work has already begun
- When the roof is expected to be installed and when the building will be sealed in with windows and doors
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Building Plans
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- Carriers often request copies of plans or drawings. These help them understand the layout, scope of work, and construction details. Even a preliminary set can be helpful.
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Total Completed Value
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- This is the replacement cost of the finished structure. It should include labor, materials, contractor fees, and built-in items like cabinetry and flooring. It does not include the land since land is not insurable property.
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Renovation Details (if applicable)
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- What portion of the building is being renovated
- Estimated value of the existing structure
- Whether the building will be occupied during construction
- What parts of the building are being removed or replaced
- Whether any structural renovations will be completed
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Contractor Information
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- Contractor name and contact information
- Proof of General Liability insurance for the contractor
- Permits, if already issued
- Details on site security after hours
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Lender Requirements
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- Some lenders have specific requirements regarding coverage, deductibles, or wind coverage. Sharing lender details early helps us structure the policy properly.
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Prior Claims
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- Underwriters may want to know whether there have been any past losses, especially on renovation projects.
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Elevation Certificate (if flood insurance is desired)
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- If you want to include flood insurance with the Builder’s Risk policy, most carriers will need an Elevation Certificate based on the construction plans. This helps determine the projected finished floor elevation and the correct flood premium. An updated Elevation Certificate is especially important in coastal areas. For more information, visit our page on flood insurance.
Optional Coverages to Consider
Depending on the scope of the project, you may want to consider adding:
- Wind insurance to cover loss from hurricane winds and tornadoes
- Flood insurance to cover rising water and storm surge
- Soft costs such as architectural fees and interest that may be affected by delays
- Loss of rental income for investment properties
- Testing coverage for mechanical or electrical systems
- Equipment breakdown
How We Help at Insurance Resources
Our goal is to make sure your project is protected from start to finish. We review lender requirements, compare multiple carriers, and help determine whether the owner, contractor, or developer should hold the policy. We also make sure the transition from Builder’s Risk to a homeowners or commercial policy is seamless so there are no gaps.
To learn more about our team and approach, visit our About Us page.
Final Thoughts on Builder’s Risk Coverage
Builder’s Risk coverage is one of those policies that can save you from major headaches if something goes wrong midway through a project. With Florida’s weather and construction climate, it is an essential part of planning and budgeting. By gathering the right information early and working with an experienced insurance agent, you can keep your project on track and protect your investment.
If you are starting a new build or renovation, our team is here to help you navigate your options and secure the coverage you need.
