Builders risk insurance in Florida

What builders risk insurance covers in Florida

Builders risk insurance protects the building structure, materials, equipment, and supplies while construction or major renovation is underway. Coverage runs from the start of construction until the building is completed and occupied.

• Building structure. framework, walls, roof, flooring, and permanent fixtures under construction
• Materials and supplies on site. lumber, concrete, steel, windows, doors, mechanical equipment, and other job-site materials
• Contractor equipment and tools. heavy machinery, power tools, and temporary site structures
• Named-storm and wind damage. damage from hurricanes and other windstorms, though coverage and deductibles may be restricted
• Other perils. fire, theft, vandalism, and water damage from non-windstorm sources

Florida hurricanes and named-storm exposure

Florida's hurricane season (June through November) is the defining builders risk challenge. A project open to the elements during hurricane season faces severe wind, water, and flying-debris damage. Most Florida builders risk policies include named-storm or hurricane deductibles, which are separate from standard deductibles and often much higher (5 percent to 10 percent of the loss or $25,000 to $50,000 minimum). Some coastal carriers exclude or severely restrict coverage for named storms, especially if you can't close and secure the structure before hurricane season.

If your project will be under construction during hurricane season (especially on the coast), you must disclose this to your builder's risk carrier and confirm that coverage and deductibles are acceptable. Some projects may need to purchase additional named-storm coverage or accept higher out-of-pocket exposure. Interior work on a fully enclosed structure faces less hurricane risk than open framing, so your project schedule and construction method affect your underwriting.

Coastal vs. inland projects

Coastal Florida (Miami-Dade, Broward, Palm Beach, Pinellas, and similar counties) faces higher hurricane and wind risk, and carriers price builders risk accordingly. Inland and central Florida projects (Orange, Osceola, Marion counties) have lower hurricane exposure and often better rates and more generous deductibles. Additionally, coastal projects may face restrictions or exclusions if construction extends into peak hurricane months.

Who needs builders risk insurance in Florida

• General contractors on new commercial or residential construction
• Specialty contractors performing major renovations or repairs
• Property developers and owners managing construction projects
• Residential builders constructing homes for sale
• Contractors remodeling occupied buildings (often required by property owners or lenders)

Builders risk cost and deductibles in Florida

Builders risk premiums in Florida are based on the total replacement cost of the building (sum insured). A $500,000 project typically costs 1 percent to 2.5 percent of the total annually, or $5,000 to $12,500 per year, with higher rates for coastal projects or projects with extended hurricane-season exposure. Deductibles commonly range from $2,500 to $10,000 for standard perils, with separate named-storm deductibles of $25,000 to $50,000 or higher.

Why buy builders risk through Maru

Florida builders risk markets shift seasonally and by location. Maru stays current on which carriers are actively writing, which have appetite for coastal projects, and what hurricane-season restrictions apply. We'll help you disclose your project timeline accurately, understand named-storm deductibles, and choose coverage that fits your project schedule and budget. We'll also coordinate endorsements as work progresses.

Frequently asked questions

Vadim — Maru Insurance
Licensed independent insurance agent · WA & FL
Written and reviewed by a licensed Maru advisor. Maru Insurance is an independent agency (WA License WAOIC #1365574, FL License #G363233) representing multiple A-rated carriers across Washington and Florida.