Florida Builders Risk Insurance: Complete Guide for Contractors and Developers [2026]

Builders risk insurance — also called course of construction insurance — is a property insurance policy that covers a building under construction from the first day of work through the certificate of occupancy. It protects the structure, materials on-site, materials in transit, and temporary structures against fire, wind, theft, vandalism, and other covered perils.

In Florida, builders risk is not optional — it is required by virtually every construction lender before the first draw, and by most county building departments before issuing a permit on projects over a certain value. It is also the primary financial protection for the contractor or developer if a hurricane, fire, or other catastrophic event destroys a partially completed building.

The structure under construction — the building itself from groundbreaking through certificate of occupancy — is the core coverage. This includes the foundation, framing, roofing, mechanical systems, and all installed components.

Materials and supplies on-site are covered against theft, fire, and weather damage. In Florida, where job site theft is a significant problem, this coverage is particularly valuable.

Materials in transit — building materials being transported to the job site — are covered under most builders risk policies.

Temporary structures such as scaffolding, construction trailers, and temporary fencing are typically included.

Soft costs — architect fees, permit costs, additional loan interest, and other expenses resulting from a covered loss that delays project completion — can be added as an endorsement. In Florida, where hurricane delays can push completion back by months, soft costs coverage is strongly recommended.

Florida builders risk policies include hurricane and wind coverage, but with a critical difference from standard property policies: a separate named-storm deductible that applies only to hurricane and tropical storm losses. This deductible is expressed as a percentage of the total insured project value — not a flat dollar amount.

In Miami-Dade County's High-Velocity Hurricane Zone (HVHZ), named-storm deductibles typically range from 3–10% of insured value. On a $2 million project, a 5% deductible means $100,000 out of pocket before insurance responds. In coastal Broward and Palm Beach counties, deductibles typically range from 3–7%. In inland markets like Orlando and Central Florida, deductibles are lower — typically 1–3%.

Carriers may also impose binding restrictions during named storm watches and warnings. Once a tropical storm or hurricane watch is issued for a Florida county, most carriers will not bind new builders risk coverage until the storm has passed and the watch has been lifted. This means contractors cannot wait until a storm is approaching to purchase coverage.

Flood damage is excluded. Storm surge, rising water, and inland flooding are not covered by builders risk policies. This is a critical gap in Florida, where storm surge from hurricanes can destroy coastal construction projects. A separate NFIP or private flood policy is required for projects in FEMA flood zones.

Faulty workmanship is excluded. Builders risk covers sudden, accidental physical loss — not defects in construction quality. If a wall collapses because of poor framing, the repair cost is not covered.

Employee theft is typically excluded from standard builders risk policies. A separate crime or fidelity bond may be needed for projects with significant on-site materials.

Mechanical breakdown and equipment failure are excluded. Construction equipment breakdowns are covered under inland marine or equipment floater policies, not builders risk.

Florida builders risk premiums are expressed as a rate per $100 of total project value. The rate varies significantly by location, construction type, and project duration:

• Miami-Dade (HVHZ), coastal projects: $4.50–$10.00 per $100 of value
• Broward/Palm Beach, coastal projects: $4.00–$9.00 per $100 of value
• Tampa Bay, coastal projects: $3.50–$7.50 per $100 of value
• Inland Florida (Orlando, Gainesville, Tallahassee): $1.20–$3.00 per $100 of value

On a $500,000 project in coastal Broward County, a rate of $5.00 per $100 produces a premium of $25,000. The same project in inland Orlando at $2.00 per $100 would cost $10,000. Project duration also affects cost — most policies are written for 12 months, with extensions available for longer projects.

Bright Coast Insurance writes builders risk through US Assure, a specialty program backed by Zurich Insurance Group — one of the largest and most financially stable insurers in the world. US Assure is one of the leading builders risk programs in Florida, with deep experience in the state's unique hurricane and coastal construction environment.

The US Assure program offers coverage for residential and commercial projects from $50,000 to $100 million in value, with options for soft costs, flood (where available), and extended reporting periods. As an independent agency, Bright Coast can also access additional markets for projects that require higher limits or specialty construction types.

Is builders risk insurance required in Florida?

Builders risk is required by virtually every construction lender before the first draw, and by most Florida county building departments before issuing permits on projects over a certain value. Even when not legally required, it is essential financial protection for any contractor or developer with a project under construction.

Does builders risk cover hurricane damage in Florida?

Yes — Florida builders risk policies include hurricane and wind coverage, but with a separate percentage deductible (typically 1–10% of insured value depending on location). Flood damage from storm surge is excluded and requires a separate flood policy.

How long does builders risk coverage last?

Most Florida builders risk policies are written for 12 months. Extensions are available for projects that run longer. Coverage ends when the certificate of occupancy is issued or the project is abandoned, whichever comes first.

Who buys builders risk insurance — the contractor or the owner?

Either the general contractor or the property owner can purchase builders risk insurance. The policy should name both as insureds. In Florida, construction contracts typically specify who is responsible for purchasing the policy — review your contract before assuming coverage exists.

What is the difference between builders risk and general liability insurance?

Builders risk covers physical damage to the structure under construction. General liability covers bodily injury and property damage claims from third parties — for example, if a visitor is injured on the job site. Both are required for most Florida construction projects.