Builders risk and installation floaters both cover property under construction — but they're designed for very different situations. Choosing the wrong one leaves you exposed.
What Is Builders Risk Insurance?
Builders risk insurance covers a structure under construction — the building itself, materials on site, and materials in transit to the site. It's designed for projects where a permanent structure is being built or significantly renovated. Coverage typically runs from groundbreaking to project completion.
Builders risk covers losses from fire, wind, theft, vandalism, lightning, and other named perils. In Florida, wind coverage is critical — and often requires a separate endorsement or a higher deductible. See our Florida Builders Risk Insurance Guide for full details.
What Is an Installation Floater?
An installation floater covers materials, equipment, and supplies that a contractor is installing — but before they become a permanent part of a structure. It's designed for specialty contractors (HVAC, electrical, plumbing, mechanical) who are installing equipment that has significant value before it's permanently attached.
Example: An HVAC contractor purchases $80,000 in equipment to install in a commercial building. From the time the equipment leaves the supplier's warehouse until it's permanently installed and accepted by the owner, an installation floater covers it against theft, damage, and loss.
Key Differences
| Feature | Builders Risk | Installation Floater |
|---|---|---|
| What it covers | The structure under construction | Materials/equipment being installed |
| Who typically carries it | GC or project owner | Specialty subcontractor |
| Project type | New construction or major renovation | Mechanical/electrical/plumbing installs |
| Coverage period | Groundbreaking to completion | Delivery to permanent installation |
| Coverage basis | Completed value of structure | Value of materials being installed |
When You Need Both
On large commercial projects, a GC may carry builders risk while the HVAC, electrical, and plumbing subs each carry installation floaters for their specific scopes. The builders risk covers the structure; the installation floaters cover the specialty equipment before it's permanently attached.
The key is to understand the gap: builders risk typically covers materials once they're on site and incorporated into the structure. An installation floater covers the gap between delivery and permanent installation. Without an installation floater, an HVAC contractor who has $100,000 in equipment stolen from a job site may find that neither their GL policy nor the GC's builders risk covers the loss.
Florida-Specific Considerations
In Florida, wind and hurricane exposure is a major consideration for both coverages. Builders risk policies in Florida often have separate wind deductibles (1–5% of the insured value) and may exclude wind entirely in coastal areas. Installation floaters are typically all-risk inland marine policies and handle wind differently.
If you're working in a coastal county, review your builders risk policy's wind provisions carefully. A $500,000 project with a 3% wind deductible means you're absorbing the first $15,000 of any wind loss. Use the Bright Coast Builders Risk Calculator to estimate your coverage needs.
Frequently Asked Questions
Does builders risk cover theft from a job site in Florida?+−
Yes, most builders risk policies cover theft of materials from the job site. However, there are often sublimits for theft, and some policies exclude theft entirely. Review your policy's theft provisions carefully, especially for high-value materials like copper.
Do I need an installation floater if the GC has builders risk?+−
Possibly. The GC's builders risk covers the structure, but it may not cover your specialty equipment before it's permanently installed. If you're an HVAC, electrical, or plumbing contractor with significant material value, an installation floater fills that gap.
How much does an installation floater cost in Florida?+−
Installation floaters are typically priced as a percentage of the project value, ranging from 0.5% to 1.5% annually. A $100,000 installation project might cost $500–$1,500 per year for coverage.
What's the difference between builders risk and property insurance?+−
Standard commercial property insurance covers completed, occupied structures. Builders risk covers structures under construction. Once a project is complete and occupied, you need a standard property policy — the builders risk policy ends at completion.
Published by Precision Underwriters Inc. dba Bright Coast Insurance — Licensed Florida Insurance Agency, License #L103957. This content was researched and written with AI assistance and reviewed by a licensed insurance professional. The information is general in nature and does not constitute insurance advice for your specific situation.