What is builder’s risk insurance?
Builder’s risk insurance is a specialized type of commercial insurance specifically designed to protect construction projects in progress, covering materials, equipment, and partially completed structures from damage or loss. In Florida, builders risk insurance is particularly essential due to the state’s unique weather risks, such as hurricanes, high winds, and severe storms, which may cause unexpected damage to construction sites. Without builders risk insurance, contractors and property owners could face substantial financial losses if a project is damaged before completion. This coverage helps ensure that construction may resume quickly, protecting the time, resources, and capital invested in the project.
Get a Quote for Builder’s Risk Insurance in Florida
What does builder’s risk insurance typically cover?
Builder’s risk insurance in Florida typically covers the following:
- Property Damage: Damage to the building structure during construction due to fire, vandalism, theft, or weather-related incidents like storms or lightning.
- Materials and Supplies: Loss or damage to construction materials, supplies, and equipment, whether on-site or in storage, until they are installed.
- Construction Equipment: Coverage for tools, machinery, and equipment used on-site that are damaged, destroyed, or stolen.
- Temporary Structures: Protection for temporary structures like scaffolding, fences, or cranes used in the construction process.
- Natural Disasters: Coverage for damage caused by natural events such as windstorms, hail, or earthquakes (depending on policy terms and endorsements).
- Vandalism and Theft: Coverage for losses resulting from theft or vandalism of materials, equipment, or the partially constructed property.
- Additional Costs: Coverage for extra expenses to meet building code requirements or to repair or rebuild after a covered loss.
Can subcontractors be covered under a builder’s risk insurance policy?
Yes, subcontractors may often be covered under a builder’s risk insurance policy, but it depends on the specific terms of the policy. Generally, the primary contractor or builder is responsible for obtaining the insurance, and it may include coverage for subcontractors working on the project. However, subcontractors may also need to carry their own liability insurance to protect against specific risks associated with their work. It’s essential to clarify coverage details with your insurance provider to ensure all parties involved are adequately protected.
Is it possible to extend a builder’s risk insurance if there’s a construction delay?
Yes, most builder’s risk insurance policies may be extended if there is a construction delay. This extension is typically necessary when unforeseen circumstances, such as bad weather, labor shortages, or supply chain issues, prolong the construction timeline. It is crucial to communicate with your insurance provider as soon as a delay is anticipated, so they may adjust the coverage period accordingly and ensure that the project remains protected throughout the extended timeframe.
How can businesses obtain builder’s risk insurance in Florida?
Reach out to the independent agents at Riley Webb Insurance for a fast quote on builder’s risk insurance. Our knowledgeable team is ready to help you navigate your coverage options and tailor a policy that meets your specific needs. With a commitment to exceptional customer service and a deep understanding of the Florida construction landscape, we ensure you receive the protection necessary to secure your investment.
