Builder's Risk insurance provides coverage for property while it is in the process of being built or extensively renovated. It protects against physical damage caused by fire, wind, vandalism, and other covered perils during the construction phase.
How It Applies to Florida Landlords
For Florida landlords engaging in "fix-and-flip" projects or substantial property rehabilitations, standard landlord policies are often insufficient. Standard policies frequently exclude coverage for structures undergoing major structural renovations. Furthermore, given Florida's volatile weather, a Builder's Risk policy is essential to protect materials stored on-site and the building framework from tropical storm damage before the project is completed. Failing to secure this coverage can leave a landlord liable for thousands of dollars in lost materials and structural damage.
Key Takeaways
- A standard homeowner's or landlord policy rarely covers major construction.
- Policies should be tailored to the specific duration and scope of the renovation.
- Ensure the policy includes coverage for materials stored at the site, not just the structure.
- Discuss project timelines with your insurer to ensure your coverage period is accurate.