Florida Builders Risk Insurance

Homeowners / Primary Home

Builders Risk Insurance indemnifies against damage to buildings while they are under construction. It protects a person's or organization's insurable interest in materials, fixtures and/or equipment being used in the construction, renovation of a building or structure. Buildings are subject to many different risks while under construction, for example:

  • They may catch on fire
  • Be damaged by high winds
  • Fall victim to other force majeure

A principle of common law is that any new construction or other improvements to land becomes property of the owner of the land - the title holder - once there has been an "improvement" to the owner's site. Builders risk insurance indemnifies against some of these losses.


Builders risk covers perils such as fire, wind, theft, vandalism, and many more. It typically DOES NOT cover perils such as earthquake, flood or wind in beach zones unless the policy has been specifically endorsed to do so. Coverage is typically during construction period only, and it is intended to terminate when the work has been completed and the property is ready for use or occupancy.

If you are going to properly setup your policy, coverage should be effective prior to when the materials are delivered to the job site. Coverage ends upon the earlier of closing of the sale, occupancy, or the policy expiration date. After builders risk coverage expires, due to sale or occupancy, the new owner should take out permanent property insurance on the building such as a homeowners policy or a commercial property policy.

Coverage should be purchased by the custom builder or general contractor and it may also be purchased by the property owner. Builders risk coverage may be necessary to show proof of insurance to comply with local city, county, and state building codes. It is often required as a condition to many contracts. If the project involves renovations or additions to an already existing building, the owner's existing property insurance may cover the work under construction, obviating the need for builders risk insurance (Policies vary). However, in the case of new buildings under construction on vacant sites, the owner may not have an existing policy that provides coverage.

Review Your Policy

We highly recommend that you review your policy coverages with your agent on an annual basis. Keep in mind that if you are planning to make any renovations to your home, such as remodeling your kitchen or getting a new roof, get in contact with your agent so your policy can be updated! Your may also qualify for a premium credit when major repairs and enhancements have been made.  Purchasing big ticket items such as jewelry, electronics, or collectibles may require riders. Check with your agent to make sure these new items are properly covered.

If you have more questions regarding builders risk insurance, contact us today! Our licensed agents at Insurance Warehouses of America have access to multiple companies to help determine the policy that best fits your needs!