Builders risk insurance in Florida
Builders risk insurance is property insurance for a building while it is under construction. It helps protect the structure and materials against covered physical damage, such as a fire, theft or storm. What it covers changes by policy, so wind, flood, soft costs and delays need a direct review before work starts.
At a glance
- What it protects
- The building and materials during construction
- Often asked for by
- Lenders and construction contracts
- Review closely
- Wind, named storms, flood and water damage
- Languages
- English and Spanish
Building Something? Protect It Before It’s Finished.
You’ve purchased the property, hired your contractor, and watched your plans start taking shape. But what happens if a fire, theft, or storm damages the project before construction is complete?
That’s where builders risk insurance comes in. It helps protect your building and construction materials against covered physical damage while work is underway.
A Construction Project—and an Unexpected Setback
Let’s say you’re building a rental property in South Florida with a completed construction value of $1.5 million.
Six months into construction, a fire damages the framing, electrical work, and materials stored at the jobsite. Now you’re facing repairs, cleanup, and a three-month delay before you can welcome tenants.
This is a hypothetical example, but it shows how one loss can affect much more than the construction schedule.
How Could Builders Risk Help?
A properly structured policy could address several parts of the loss:
| Coverage | How It Could Help |
|---|---|
| Building Under Construction | Helps pay to repair or rebuild covered damaged work, including materials and labor. |
| Construction Materials | Helps replace insured materials damaged at the jobsite. Coverage for materials in transit or stored elsewhere should be specifically reviewed. |
| Debris Removal | Helps pay for cleanup following covered damage, subject to policy limits. |
| Soft Costs | If included, helps with specified additional expenses caused by a covered delay, such as construction loan interest, permit fees, or architectural fees. |
| Delay in Completion / Lost Rental Income | If purchased, may help replace covered rental income lost when insured damage delays completion, subject to waiting periods and limits. |
The important part? These coverages aren’t automatically included in every policy. They need to be reviewed against your project and budget.
Building in South Florida? Let’s Talk About Storm Coverage.
Windstorm, named storms, flood, and water damage deserve special attention. Each may have its own exclusions, restrictions, or deductible.
Before construction begins, make sure you understand how your policy handles these exposures.
Ask about flood directly: flooding typically is not covered under a standard commercial policy (opens in a new tab), and builders risk policies vary, so check the wording and whether separate coverage is available for your site. See our flood insurance page.
Sources, checked October 20, 2026
Does It Cover Poor Workmanship?
Builders risk generally does not pay simply to correct faulty materials, design, or workmanship. Some policies may cover resulting damage to other insured property, depending on the wording.
Builders risk protects against covered losses during construction; it does not guarantee the quality of the work.
Is builders risk insurance required in Florida?
The requirement usually comes from a lender or a construction contract, so start by reading those documents.
- Lender: A construction loan can require the coverage, along with certain limits and the lender's name on the policy.
- Contract: A construction contract can say who buys the policy and who it protects.
- No requirement: You still decide how much of the project you could pay to rebuild yourself. A licensed agent can go through the policy with you.
Who usually buys builders risk insurance?
It depends on the contract. The owner, the general contractor or both can have a financial stake in the project.
Settle three things before work starts: who buys the policy, who is named on it, and who pays the deductible if there is a loss. Put the answers in the contract.
What builders risk does not replace
Builders risk is generally coverage for the project itself. It usually works alongside other policies, not in place of them.
- General liability: Addresses covered injuries to other people and damage to their property. See business insurance.
- Workers' compensation: In construction, Florida's rules apply to employers with one or more employees (opens in a new tab), under Fla. Stat. 440.02 (opens in a new tab).
- Commercial auto: Trucks and vans that go to the jobsite need their own coverage. See commercial auto insurance.
Building as an owner-builder?
Taking on the project yourself also means taking on more of its risk, so talk to an agent before work starts.
The owner-builder disclosure in Fla. Stat. 489.103 (opens in a new tab) says the owner is the responsible party of record on the permit. It also says that unlicensed people working on the building must be employed by the owner, who must provide workers' compensation, and that homeowner's insurance may not cover injuries to them. An attorney can tell you how the law applies to your project.
Sources, checked October 20, 2026
When does builders risk coverage end?
Builders risk is made for the construction period, and the policy's own wording says when it ends, such as on a set date or when the project is finished or occupied.
- If the project runs late: Ask early how an extension works.
- When the building is finished: Arrange the next policy before this one ends. For a rental, see landlord insurance.
How much does builders risk insurance cost in Florida?
There is no standard price, because insurers look at the risk of each project.
Project value
The completed construction value you need to insure.
Construction type
Block, frame or steel, plus the number of stories.
Location
Wind and flood exposure at the site.
Schedule
How long the work is expected to take.
Coverages
Soft costs, delay in completion, and materials in transit or storage.
Deductibles
Including any separate storm deductible.
What to have ready for a quote
These details help a licensed agent review your project.
- The project address and a short description
- The budget or completed construction value
- Plans or scope of work, with start and expected finish dates
- Construction type and number of stories
- Who the owner, general contractor and lender are
- Whether it is new construction, an addition or a renovation
- Any flood zone information you already have
Questions about builders risk insurance
Is builders risk insurance required in Florida?
The requirement usually comes from a lender or a construction contract, so read those documents first. A construction loan can require the coverage and certain limits, and a contract can say who buys the policy. A licensed agent can review the requirements with you.
Do I really need builders risk insurance?
It depends on your project, your contract and your lender. Think about what a fire, theft or storm during construction would cost you, and whether your current policy applies. Tell your agent before work starts, because a regular property policy may not be made for a project under construction.
What does builders risk insurance not cover?
It generally does not pay simply to correct faulty materials, design or workmanship, although some policies may cover resulting damage to other insured property. It also does not replace general liability, workers' compensation or commercial auto. Exclusions vary, so check the wording of your policy.
How much does builders risk insurance cost in Florida?
There is no standard price, per month or per project. Insurers look at the completed construction value, construction type, location, schedule, coverages and deductibles. The way to know is to get quotes based on your own project.
Who usually carries builders risk insurance?
It depends on the contract. The owner, the general contractor or both can have a financial stake in the project. Decide before work starts who buys the policy, who is named on it and who pays the deductible.
Does builders risk insurance cover hurricane damage?
It depends on the policy. Windstorm, named storms, flood and water damage may each have their own exclusions, restrictions or deductible. Make sure you understand how your policy handles them before construction begins.
What is the difference between a hurricane deductible and a named storm deductible?
In general, a hurricane deductible applies to hurricanes, while a named storm deductible can also apply to other storms that receive a name. Your policy sets the definition and the amount, so ask to see the deductible in dollars.
Does builders risk insurance cover liability?
Builders risk is generally coverage for the project itself. Injuries to other people and damage to their property are usually a general liability question, and injuries to employees are usually a workers' compensation question. Check what your own policy includes.
Can a homeowner get builders risk insurance?
Homeowners building a house or doing a major renovation can ask about it. Whether it fits depends on the project and the insurer. Tell your agent before work starts, because your homeowners policy may limit coverage during construction.
This page is general information, not a coverage recommendation. Policies vary; a licensed Assure US agent will review your project.
Ready for a builders risk quote?
Tell us about your project. A licensed Assure US agent reviews the details and walks you through the options, in English or Spanish.