Updated May 2026 · Florida Plan Finder · Licensed Florida Health Insurance Producer

Builder's Risk Insurance for Residential General Contractors in Sunrise, FL

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.

What Builder's Risk Covers

• The structure itself (framing, sheathing, roofing, finishes) during construction
• Materials on site and in transit
• Temporary structures (scaffolding, storage units)
• Damage from fire, lightning, theft, vandalism, wind (with hurricane sublimit)
• Often: soft costs like architect fees, loan interest if covered loss extends construction timeline

What Builder's Risk Does Not Cover

• Faulty workmanship (rebuild costs of bad work)
• Theft by employees (need crime/fidelity coverage)
• Earth movement, flood (separate policies)
• Liability — third-party injury or property damage (need GL)
• Workers' comp (separate policy)

Who Buys It and Who's Insured

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:

• Property owner
• General contractor
• Construction lender (if there's a construction loan)
• Major subcontractors (sometimes)

Cost Benchmarks — Sunrise Residential Construction

Premium typically runs 0.30–0.65% of construction value. Hurricane wind sublimits and deductibles often run 2–5% of insured value separately.

Hurricane and Wind Sublimits

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.

Coverage Term

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.

Common Mistakes

• Confusing builder's risk with general liability (different policies; both needed)
• Letting the policy lapse if construction extends past original term
• Missing the hurricane deductible during storm season planning
• Failing to name the construction lender as additional insured (lender will require)
• Skipping coverage on materials in transit (stolen lumber from a delivery truck)