Commercial and Residential Builders Risk Insurance - What You Need to Know if You're About to Start Building in Florida

Commercial and Residential Builders Risk Insurance - What You Need to Know if You're About to Start Building in Florida

Photo showing stucco being applied.

During a building’s construction process, there can be many risks involved that deserve adequate insurance protection. For starters, your standard coverage for things like fire, burglary, vandalism, windstorm, hurricane, and hail are all obvious areas of concern (especially in Florida). But what about liability? Most land-owners and property developers think their current insurance policy extends coverage to a building under construction without notice or additional fee, but that is absolutely wrong. Not only will your current insurance likely not offer an extension, if they did the coverage pitfalls may be hidden and costly when compared to a stand-alone insurance policy tailored to the construction process.

Protecting What You Built

The first thing that comes to mind when it comes to insurance protection is protecting what you’ve built – and no I do not mean the actual building. I mean your finances, your business, your personal assets – all of these things can be put at risk by not securing coverage correctly. The construction process of any building, whether it be a mother-in-law suite, a brand new home, or a brand new 3 story tall office building – will require extensive excavating, construction, and development. All of this means countless contractors, building equipment, inspectors, employees, etc. will be contributing to the process of the build – and that means exposing themselves to a possible injury on that property. If that property is owned by you or your business, it could mean the beginning of the end without adequate protection.

Covering Your Investment

The second thing that should come to mind is the building itself. I consider the building itself to be “secondary” because it’s calculable – meaning you can calculate your expected loss by knowing how much of investment you put in to get to that point of construction and knowing what it would cost to start over. With other types of insurance losses (such as injury liability) the calculable amount beforehand can be impossible to determine. It’s a good idea to keep in tune with the progress of your project, the current value as it pertains to the stage of construction you are in, as well as the projected value of the building once complete. All these figures are necessary to be aware of to ensure your insurance coverage is correctly issued. Not only can your insurance policy provide coverage for the building itself, but it can also provide coverage for tools, equipment, and material used in the construction process.

For all of these reasons, it’s important to maintain the correct insurance and understand your insurance purchase. If you need a fresh look at your insurance or are about to start a new construction project, Evolve Insurance Agency would love to help. Please give our office a call at (941) 244-2760 or visit our quote intake webpage here!

FAQ – Frequently Asked Questions

Q: What is Builders Risk Insurance?

A: Builders risk insurance is a type of insurance policy someone who owns vacant land purchases prior to beginning to develop that land. Builders risk insurance can be necessary for a single family who owns the lot they intend to build their next family home on and it can also be necessary for large scale developers building massive condos and office buildings. If you ore your company is about to break ground for a new project, then you need to secure builders risk insurance.

Q: What type of Builders Risk Insurance Coverage does Evolve Offer?

A: All kinds! We can offer an insurance quote for just about any type of new construction project whether it be a single-family home, a strip mall, an office building, or a skyscraper. Evolve Insurance Agency has access to the solutions and the insurance markets you need to maintain adequate coverage that fits your budget. For any type of commercial or residential new construction quote, simply call our office or request a quote via our website here:

Q: What insurance carriers does Evolve Insurance Agency offer for this program?

A: For buildings under construction, we have access to a wide array of insurance carriers including Bankers, Zurich, Olympus, Cypress, Scottsdale, and many others! It’s safe to say you’ll find suitable coverage at an excellent rate by choosing to get a quote with our agency!

Q: Do you offer insurance to land/buildings that are owned by the builder and/or developer?

A: Absolutely! We can offer a builders risk insurance quote to just about any person or entity that needs it provided they meet the carriers eligibility criteria.

Q: Do you offer insurance to land/buildings owned by the homeowner?

A: Absolutely! If you own the vacant lot but are hiring a builder to build a home, it’s likely they have told you need to secure Builders Risk insurance for your own protection. As the landowner, you are liable for injuries that occur on your property, so it’s imperative your coverage is correct to protect your finances.

Photo by Rodolfo Quirós from Pexels