Florida Builders Risk Insurance
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Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.
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Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
If you are working on a new construction project in Florida, proper protection is needed. A builders risk policy will provide coverage for the building process, and to ensure that you're adequately insured, review your project with a professional.
An independent insurance agent can help with a policy that won't break the bank. Since they work with several markets, you'll be able to find coverage for an affordable price. Get connected with a local adviser for quotes.
What Is Builders Risk Insurance?
A builders risk policy in Florida provides protection for construction projects. Insurance is used during the build-out of the structure and then termed once completed. Check out what builders risk insurance will cover when under construction.
What Does Builders Risk Insurance Cover?
When buildings or structures are under construction, builders risk insurance applies. The different coverage options will depend on the size and cost of the project. It pays for things like the following.
- Materials
- Supplies
- Equipment on site
- Equipment in transit
To have a more comprehensive policy, you can usually add soft costs to the mix. This will pay for the project costs if a build gets delayed due to damage. Loss of use, permits, real estate taxes, and more can be included.
How Much Is Builders Risk Insurance?
Business insurance premiums vary from person to person. Florida builders risk pricing will be dependent on numerous factors. Take a look at what your builders risk insurance cost depends on.
- Type of project
- Detail of the project
- Coverage selected
Other things that will impact your premiums are the anticipated cost of completion. The carrier will ask what the final project price projections are and then rate your policy accordingly. You can obtain quotes for your exact figures.
Are Construction Workers Responsible for Owning Builders Risk Insurance?
It's essential to know who should carry the builders risk insurance for a project. Anyone with a financial interest in your Florida build should be listed on a builders risk policy. The property owner at the time of the build is ultimately the holder.
A general contractor will have their own primary coverage that includes projects. Every person involved should be listed on each other's policies. You will likely want to list the following on your policy.
- Subcontractors
- Lender
- General contractor
- Architect
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Do Construction Workers Really Need Builders Risk Insurance?
In 2019, Florida had $36,870,506,000 in commercial claims paid. To avoid financial loss, adequate protection should be obtained. In order to know if you need builders risk insurance, you'll have to review your upcoming projects. Builders risk insurance is necessary when you are working on these things.
- A residential construction project
- A commercial construction project
- Remodeling your house
- Remodeling your commercial property
Does Builders Risk Insurance Cover Theft?
Materials and other items are usually left on the job site. Months at a time go by where construction is out in the open for the taking. Theft is the number one concern to a construction project.
Fortunately, most builders risk policies will include the theft of materials and vandalism coverage. This can be huge when a loss occurs, and you are out thousands of dollars. Every limit will be tailored to your specifics.
Although builders risk insurance is primarily geared towards construction workers, homeowners can also consider this policy. Whether you are building a new home or remodeling the current one, builders risk coverage is needed. In Florida, there were $3,456,451,000 in homeowners claims paid in 2019 alone. The right protection during the build-out process is key to avoiding a considerable expense.
If you are building a new home from a builder, typically, they own the property and construction until closing day. In this case, the builder would obtain the policy. Everyone with a financial interest should be listed on the builders risk insurance.
How to Connect with an Independent Agent in Florida
When you're starting a new project in Florida, builders risk insurance is necessary. It will bring you to the finish line unscathed. To avoid a massive financial mess, get proper coverage before it's too late.
An independent insurance agent can help find a policy for an affordable price. Since they work on your behalf at no cost, you'll save time and money. Go to TrustedChoice.com to connect with a local expert in minutes.