Builder's risk insurance is the policy most residential GCs in Sunrise misunderstand. It is not general liability. It is not workers' comp. It is property insurance on the structure being built — covering fire, theft, vandalism, and weather damage during construction, before the certificate of occupancy is issued. This page covers what it includes, who should buy it, and what Broward County GCs typically pay.
Builder's risk is typically bought by either the GC or the property owner — depends on the construction contract. AIA standard contracts often place the obligation on the owner; custom Florida residential contracts vary. Critical: whoever buys it should name all interested parties as insureds:
| Project | Construction Value | Premium Range |
|---|---|---|
| Tear-down + rebuild custom home | $800,000 | $2,400–$5,200 |
| Major addition/renovation | $300,000 | $1,100–$2,400 |
| Spec home (new build) | $650,000 | $2,000–$4,200 |
| Townhome 4-pack | $1.6M | $5,200–$10,800 |
Premium typically runs 0.30–0.65% of construction value. Hurricane wind sublimits and deductibles often run 2–5% of insured value separately.
Sunrise sits in Broward County's wind zone. Standard builder's risk policies include hurricane wind coverage but with a separate (higher) deductible — typically 2–5% of insured value rather than a flat dollar deductible. For an $800K project that's a $16K–$40K hurricane deductible. The owner and GC should know this number before storm season.
Builder's risk policies are typically written for a 6, 9, or 12-month term tied to expected construction duration. If construction extends past the policy term, the policy must be extended (not always automatic). When the certificate of occupancy is issued, coverage transitions to a homeowner's policy for the owner — there's typically a brief gap that should be coordinated.
Depends on the contract. AIA standard places it on the owner; custom Florida residential contracts vary. Both parties should be named as insureds regardless of who pays. Construction lenders (if any) require to be named.
Roughly $2,400–$5,200 per construction term — typically 0.30–0.65% of construction value. Hurricane wind deductibles are separate (2–5% of value).
No. Faulty workmanship is excluded. The cost to redo bad work falls on whoever is responsible (the contractor's GL or professional liability, or the contractor's own pocket). Builder's risk covers fire, theft, vandalism, weather damage to the structure during construction.
Coverage ends when the certificate of occupancy is issued or per policy terms. The owner transitions to a homeowner's policy for the completed structure. There's typically a brief gap — coordinate the new homeowner's policy effective date with the builder's risk end date.
Including hurricane sublimit considerations and lender requirements.
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