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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.
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.
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.
Courtney was awesome in every way. I’m knew to all of this and she helped explain everything to me definitely will continue business for years to come customer service matters the most ❤️
Barbee Jackson Insurance has been so helpful with my business and personal insurance. They are always helpful and answer any question I have..... even the very obvious ones. I love dealing with this company and don't know that I'd be in business without them!!
Fast, knowledgeable and courteous. Always answers my questions and requests. I recommend this agency 💯