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- FL Agency License L016633
Builders risk
Building a new home, adding on, or running a renovation? Builders risk covers the structure and materials while the work is underway, when a regular property policy usually won’t.
The short answer
Builders risk insurance covers a building under construction or major renovation, including materials on site, in transit or in storage, against fire, wind, theft, vandalism and other covered losses. It’s usually bought by the property owner or the general contractor for the length of the project. It doesn’t cover liability, workers’ injuries, contractors’ tools or faulty workmanship.
Wind and named-storm coverage, with its deductible, is a key part of any Florida builders risk policy, since an unfinished building is especially exposed. Theft of materials and equipment from job sites is also common, so check the theft terms. When construction ends, the policy needs to switch to a homeowners or commercial property policy without a gap.
Contractors also need general liability, workers’ compensation and often bonds.
Either can. The construction contract usually decides. What matters is that someone buys it and that both parties’ interests are covered.
It’s written for the expected length of the project, often 3 to 12 months, and can usually be extended if the project runs long.
Usually not. Contractors’ tools and equipment are covered by a separate inland marine or equipment policy.
