Florida Builders Risk Insurance

Florida Builders Risk Insurance

Florida is a growing state in which new construction is exploding. This is great for our beautiful state in so many ways, but what about the insurance to cover all these new buildings? Whether you are building a single-family home or a multi-million dollar commercial property, there is a builder’s risk policy to meet your needs.

What is Builders Risk Insurance?

Florida Builders Risk Insurance is a policy designed specifically for structures, both new and existing, while in the course of construction or renovation. It may be purchased, and the policy owned, by the general contractor or the property owners. Although policies may vary with coverage options, a comprehensive policy will cover all stages, from beginning to receipt of a Certificate of Occupancy.

Program Highlights

• Soft Costs
• Permission to Occupy
• Windstorm Damage
• Reporting Forms Available
• Startup and Mid-Term Projects

Commercial & Residential Eligibility

• Homebuilders
• Commercial Habitational
• Retail
• Public Buildings
• Hotels/Motels

Coverage Options

• Total Insured Value $100,000 to $250M
• Minimum Deductible $1,000 AOP, 2%-5% Named Storm

Now that we know what it is, let’s talk about what it provides coverage for. The first, and most obvious, is the main structure itself. The coverage amount should be set at replacement value, which is the completed value of the project. If it is a renovation project than coverage may be determined by the current value plus renovation cost to determine the replacement value. In addition to the main structure, it will also provide coverage for items delivered to the construction site that are not yet installed on the home and/or at a temporary storage location. There are also values built in to coverage items in transit. The policy could also be endorsed to cover soft costs which could include things such as architect, engineer, and consultant fees, legal and accounting fees, licenses and permit fees, interests on construction loan, advertising and promotion.

It is important to discuss coverage limitations to the risk insurance policy. Liability coverage for the construction project is typically NOT included in the Florida Builders Risk policy. If the contractor purchased the insurance coverage than the business would need General Liability to cover the job site. If the home or property owner purchases the insurance, then there are several ways to be protected by liability, some of which may already be in place. This is an important discussion to have with your agent to make sure you are protected.

Finally, there are a few things unique to most builders’ risk policies. They are usually a one-shot policy. What does that mean? You have a set amount of time (3 months, 6 months, 12 months) to complete the construction project or coverage will expire without a renewal being offered. If the project is not complete a new application would be required. Policies are also typically fully earned, meaning the premium is paid in full for the term and cancellation would not result in a returned premium.

With over 40 years combined experience, Barbee Jackson Insurance has the knowledgeable agents to build the right policy for your construction needs. Experience the difference and call today for a No Obligation, Free Quote.