Commercial Lines

Builder's Risk Insurance

Specialized coverage for construction projects — protecting the structure, materials, and equipment from groundbreaking to the final walkthrough.

Overview

What Is Builder's Risk Insurance?

Builder's risk insurance (also called course of construction insurance) covers buildings and structures while they're under construction or renovation. Standard property insurance doesn't cover buildings that aren't yet complete, which means every construction project — from a residential addition to a commercial build-out — carries significant uninsured exposure without it. Builder's risk fills that gap, covering the structure, materials on-site, and equipment against fire, theft, vandalism, weather damage, and more.

Why It Matters

Construction projects in South Florida face unique risks — hurricane season, tropical storms, and high theft rates on job sites. A fire, storm, or theft event mid-project can result in hundreds of thousands of dollars in losses with no coverage to fall back on. Builder's risk ensures that a setback doesn't become a financial catastrophe for the owner, developer, or contractor.

What's Covered

  • The structure under construction or renovation
  • Building materials on-site and in transit
  • Temporary structures (scaffolding, fencing)
  • Equipment and tools on the job site
  • Fire, lightning, and explosion damage
  • Theft and vandalism
  • Wind and weather damage (including hurricane)

Is This Right for You?

Who Needs Builder's Risk Insurance?

Homeowners undertaking major renovations or additions

Real estate developers and investors

General contractors on residential and commercial projects

Property owners building new construction

Lenders requiring coverage as a loan condition

Subcontractors with significant material exposure on job sites

Common Questions

Frequently Asked Questions

Who purchases builder's risk insurance — the owner or the contractor?

Either party can purchase it, and the policy can cover both. Typically, the property owner or developer purchases the policy, but it's often negotiated in the construction contract. We'll help you structure coverage that satisfies all parties.

How long does a builder's risk policy last?

Policies are typically written for the duration of the project — 3, 6, or 12 months — with the option to extend if the project runs long. Coverage ends when the project is complete and a standard property policy takes over.

Does builder's risk cover hurricane damage in Florida?

Most builder's risk policies cover wind damage, but terms vary by carrier. In Florida, it's critical to review the wind and named storm provisions carefully. We make sure your policy addresses South Florida's specific weather risks.

What's not covered by builder's risk insurance?

Standard exclusions typically include employee theft, mechanical breakdown, faulty workmanship, and flood (which requires a separate policy). We'll walk you through any gaps and recommend additional coverage where needed.

Ready to Get Covered?

As an independent agency, we shop multiple carriers to find you the best rate. No obligation — just honest advice.

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