What Is a Builders Risk Policy and Who Needs One? 

A builders risk policy is a specialized type of property insurance designed to cover buildings and structures that are under construction or renovation. Unlike standard property insurance, builders risk insurance is tailored to the specific risks encountered during construction. This coverage can help protect against losses from events such as fire, theft, vandalism, windstorms, and certain types of water damage.

What Does Builders Risk Insurance Cover?

Builders’ risk policies can be customized, but they typically cover:

• The structure while it’s being built
• Materials, supplies and equipment on-site, in transit or temporarily stored off-site
• Certain soft costs, such as architect fees or permit expenses, if a covered loss delays the project

It’s important to note that this policy usually does not cover accidents or injuries on the job site, nor does it cover faulty workmanship or design errors.

Who Needs a Builders Risk Policy in Florida?

Anyone with a financial interest in a construction or renovation project should consider builders risk insurance. This includes:

• Property owners and homeowners undertaking major renovations or new builds
• Contractors and builders in charge of project completion
• Developers managing large-scale construction projects
• Lenders or investors requiring proof of insurance before funding

In Florida, where weather-related risks like hurricanes and heavy storms are common, having the right builders risk policy is especially important. Our team can help you assess your project’s unique exposures and ensure you have the protection you need.

Contact B R Taxes and Insurance today to get the coverage that fits your circumstances.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.