Builder's Risk Insurance Florida

Last updated: October 22, 2026

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"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett

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Builder's risk insurance protects a property and the materials going into it while you renovate or build. In Florida, that protection has to hold up through more than a typical rehab. The house may sit open through hurricane season. A partial roof loss can turn into a full roof replacement under state code. A flood zone renovation can run into the FEMA 50 percent rule. And many insurers stop writing new coverage the moment a storm watch goes up.

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This guide covers builder's risk for Florida investors working on 1 to 4 unit properties: fix and flips, BRRRR rehabs, duplex to fourplex value-add projects, and ground-up or infill builds. It applies whether you are gutting a block ranch in Tampa, rebuilding a storm-damaged canal home in Cape Coral or adding a unit to a lot in Jacksonville. For the fundamentals that apply in every state, such as coinsurance, vacancy clauses and soft costs. This page focuses on what changes when the project is in Florida.

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Insurance disclosure: A portion of the insurance inquiries submitted on OfferMarket are quoted, bound and serviced by OfferMarket Insurance LLC (NPN 20545557), which holds individual state insurance licenses. View the full list at offermarket.us/licenses.

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Key takeaways

• Bind before you need it. Citizens Property Insurance and many private carriers suspend new coverage statewide once a tropical storm or hurricane watch or warning is issued for any part of Florida.
• Expect a separate hurricane deductible. Florida residential policies offer hurricane deductibles of 2, 5 or 10 percent of the dwelling limit, and surplus lines policies can be different.
• Do not accept a wind exclusion on a financed deal. Florida insurers must offer one, and lenders do not allow it.
• Check the FEMA 50 percent rule before you finalize scope. In a flood zone, a large renovation can trigger elevation and full flood code compliance.
• Price ordinance or law coverage on older homes. Florida's roof rules and frequent Building Code updates make code upgrade costs a real exposure.
• Treat sinkholes as a separate decision. Sinkhole coverage is optional in Florida, and builder's risk programs commonly exclude earth movement.
• Use the rehab to cut the rental premium. Wind mitigation features documented on Florida's 1802 form can lower the landlord policy cost after the work is done.
• Know Florida's claim clock. A property claim must be reported within 1 year of the date of loss.

What builder's risk insurance is

Builder's risk is temporary property insurance for a building under construction or renovation. It covers the structure, the materials stored on site and the materials already installed, and it ends when the project ends. For a full explanation of how it works, including the completed value method, coinsurance and the difference between ARV and replacement cost, see the national guide.

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Why a Florida homeowners policy does not fit a rehab

A standard homeowners policy assumes someone lives in the house. Most homeowners and dwelling policies limit or remove coverage for vandalism, glass breakage and water damage once a property has been vacant for an extended period, often 60 days, and many do not respond at all to a gut renovation. Florida adds another layer: the private homeowners market has been under strain for several years, and carriers writing occupied homes are rarely interested in a vacant property with an open roof or no drywall.

The usual answer for 1 to 4 unit investors is a fix and flip policy, which bundles builder's risk style property coverage, a vacancy provision and general liability into one policy built for the rehab period (OfferMarket). For new construction, a standalone builder's risk policy with separate liability is common.

Why the rehab period is riskier in Florida

Hurricane season overlaps most project timelines. The Atlantic hurricane season runs from June 1 to November 30. That window captures about 97 percent of Atlantic tropical storms and hurricanes, and the season peaks around September 10, with most activity from mid-August to mid-October (FOX Weather, citing NOAA). The typical flip took 161 days from purchase to resale in the second quarter of 2026, according to ATTOM. A Florida rehab that starts in late spring will almost certainly spend the peak of the season under construction.

Flood is a statewide issue. Florida has about 1.7 million National Flood Insurance Program policyholders, and in 2023 the state received about 69 percent of NFIP claim payments nationwide (Insurify, analyzing NFIP data).

Coastal construction risk is hard to place. A Rough Notes review of the Florida builder's risk market found that the closer a project is to the coast, the less likely admitted markets are to cover wind or flood. It identified frame construction on or near the water as the most difficult risk to place, and it warned that policy extensions are harder to obtain in Florida.

Many Florida flippers have no lender watching their insurance. In ATTOM's Q1 2026 report, 79.2 percent of flips in Naples and 77.5 percent in Cape Coral were bought with all cash, among the highest shares in the country. No lender requires those investors to insure, so an uninsured hurricane, fire or theft loss falls entirely on them.

Which policy fits your Florida project

Your project type decides the policy. The categories are the same as in other states, but Florida changes what to look for inside each one.

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• Light cosmetic flip, occupied or quickly re-occupied. If the property will not be vacant for long and the work is limited to paint, flooring and fixtures, some investors use a dwelling policy with a vacancy endorsement. In Florida, check the windstorm terms and hurricane deductible closely, because a dwelling policy built for a rental may not respond to construction-related losses.

• Medium to heavy rehab of a vacant property. This is where a fix and flip policy fits best. It covers the existing structure and the improvements as they go in, includes a vacancy provision and adds general liability. In Florida, confirm that wind is included and find the hurricane deductible on the declarations page before you bind.

• *Storm-damaged property bought as is.** Many Florida listings after Hurricanes Ian, Helene and Milton have been damaged properties. These need a policy that will accept existing, unrepaired damage, with the understanding that damage present before the policy started is not covered. Document the condition at purchase with dated photos. In a flood zone, check the local substantial damage determination before you close.

• *Ground-up or infill construction.** A standalone builder's risk policy written on completed value, with separate general liability, is the standard approach. Build to the current Florida Building Code and insure to the cost of meeting it.

• *Small multifamily value-add.** Duplexes, triplexes and fourplexes follow the same logic, with the added question of partial occupancy. If some units stay rented while others are renovated, tell the agent. A fully vacant building and a partly occupied building are underwritten differently. Our guides to the triplex and fourplex cover the financing side.

Florida rules that change your builder's risk policy

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Hurricane and windstorm coverage in Florida

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How Florida hurricane deductibles work

The Florida Department of Financial Services explains the state's hurricane deductible rules for residential policies:

• Insurers must offer hurricane deductibles of $500, 2 percent, 5 percent or 10 percent of the dwelling limit. For dwellings insured at $250,000 or more, the $500 option does not have to be offered.
• The hurricane period begins when the National Hurricane Center issues a hurricane watch or warning for any part of Florida and ends 72 hours after the last watch or warning is lifted.
• On personal residential policies, the hurricane deductible applies once per calendar year across policies with the same insurer or insurer group. A second hurricane in the same year uses the greater of the remaining hurricane deductible or the all other perils deductible.
• When a hurricane deductible applies, no other deductible can be stacked on top of it.

Three points matter most for investors:

Read your actual quote. The same Department of Financial Services page notes that surplus lines policies may carry different deductibles. Many renovation and vacant property policies are written in the surplus lines market, so the statutory options above may not be what you see. Some policies use a named storm deductible, a wind and hail deductible or a flat dollar figure. Find the wind-related deductible on the declarations page and write it into your budget.

Size your reserves to the wind deductible. A percentage deductible is calculated on the insured value, not the loss. If your completed value is $400,000 and your hurricane deductible is 2 percent, you pay the first $8,000 of a hurricane loss. At 5 percent, you pay $20,000. That is simple arithmetic on the deductible percentages, and it is why a Florida rehab budget needs a reserve line for wind, separate from the general contingency.

Check your lender's deductible terms. OfferMarket's fix and flip guidelines set a $5,000 property deductible (OfferMarket). Ask your lender how it treats a separate hurricane deductible before you bind, so the certificate is not rejected the day before closing.

Your lender will not accept a wind exclusion

Florida insurers must offer a windstorm coverage exclusion. Using it requires a signed statement from the policyholder and, where there is a mortgage, written approval from the mortgagee (Florida DFS). Excluding wind can make a quote look much cheaper. It also leaves the most likely major Florida loss uninsured.

OfferMarket's lending guidelines do not allow windstorm, hail or named storm exclusions (OfferMarket). Some vacant property policies leave wind out as a standard feature rather than through a signed exclusion, so read the perils section as well as the declarations. If a quote excludes wind in any form, it will not satisfy a financed rehab.

Cash buyers have the option to exclude wind, but the exposure does not disappear. If you are holding an open rehab in Southwest Florida through September, a wind exclusion is a bet with the whole project on the table.

Bind before the storm, not during it

When a storm threatens Florida, insurers protect themselves by suspending new business. Citizens Property Insurance, the state-created insurer, announces statewide binding suspensions: once the National Weather Service issues a tropical storm or hurricane watch or warning for any part of Florida, agents cannot bind new applications or increases in existing coverage until the suspension is lifted (Citizens). Private carriers commonly follow similar practices.

That rule shapes the calendar of a Florida deal:

• Bind before closing, and well before any storm forms. A storm watch for the Panhandle can freeze binding for a closing in Miami.
• Ask for limit increases early. If your scope grows and you need a higher limit, request the change as soon as the budget changes, not after a cone appears on the forecast.
• Have the policy quoted and ready during peak season. For a closing between August and October, get the quote finalized days ahead, so a suspension does not push your closing.
• Watch the renewal or extension date. If your policy term ends in the middle of hurricane season, start the extension conversation early. Rough Notes notes that Florida extensions can be harder to get than in other states (Rough Notes).

Secure the site when a watch is issued

A house under renovation is a job site, and some Florida counties set storm rules for job sites. Miami-Dade County's hurricane protocol, under Section 8-16 of the county code, applies once a tropical storm warning or hurricane watch is issued. On a typical house rehab, that means tying down or removing the portable toilet and loose equipment, securing roof tiles and other stored materials, clearing or securing debris and protecting window openings (Miami-Dade County). The City of Miami Beach publishes similar guidance, including tying down materials after a hurricane watch and removing or covering dumpsters after a warning.

Loose materials become windborne debris. A pallet of roof tiles or a sheet of plywood left in the driveway can damage your house and the houses next door, which brings your general liability into the loss as well as your property coverage. Put storm preparation in your contractor agreement: who secures the house, how fast after a watch, and where stored materials such as cabinets, flooring and new windows go.

Florida Building Code, roofs and ordinance or law coverage

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Code updates raise the cost of a Florida rehab

The Florida Building Code applies to houses, duplexes and small multifamily properties, and a permitted rehab must meet the edition in force when the permit is issued. The current 8th Edition took effect on December 31, 2023. For 1 to 4 unit investors, the changes that reach the budget are mostly roof and flood related: a new shingle roof needs two layers of underlayment, and new or substantially improved homes in flood zones must sit higher above the base flood elevation (Permit Place). Every roofing product used in Florida also needs state product approval. The next edition is expected around December 31, 2026.

Why this matters for insurance: code-driven costs raise both your completed value and your cost to rebuild after a loss. If your permit falls near the changeover date, ask your contractor which edition applies before you set the policy limit.

Miami-Dade and Broward: the High-Velocity Hurricane Zone

In the High-Velocity Hurricane Zone, which covers Miami-Dade and Broward counties, the windows, doors, garage doors and roofing you install on a house must carry a Miami-Dade Notice of Acceptance, which means the product passed the county's impact and wind pressure tests (Permit Place). These products typically cost more than standard ones.

For insurance, that has two effects. Your completed value is higher than a comparable rehab elsewhere in the state, and so is the cost to rebuild after a loss. Set the limit on those real costs. A limit copied from a similar house flip in Ocala will leave a Fort Lauderdale rehab underinsured.

The 25 percent roof rule

Florida's roof rules are one of the biggest drivers of rebuild cost after a partial loss.

Under a 2022 change to Florida law, section 553.844(5) of the Florida Statutes, if a home's roof was installed or replaced under the 2007 Florida Building Code or later, only the repaired section must meet current code, even when 25 percent or more of the roof is repaired (Dinsmore).

Older roofs do not get that relief. For homes built before March 2009 with no prior roof replacement, damage to more than 25 percent of the roof surface can require replacing the full roof to current code (Permit Place).

Think about what that means on a 1970s ranch in Pinellas County with the original roof deck and a 2005 shingle layer. A storm tears off a third of the shingles. The covered damage is one third of the roof, but code may require all of it to be replaced.

Why ordinance or law coverage matters more in Florida

Ordinance or law coverage pays for costs that come from enforcing building codes after a covered loss. It usually has three parts: the value of the undamaged portion that must be torn down, the cost to demolish it, and the added cost to rebuild to current code. The national guide explains each part in detail (OfferMarket).

In Florida, three rules push investors toward this coverage: the 25 percent roof rule on older roofs, the FEMA 50 percent rule in flood zones and the frequent Building Code updates. Our insurance team typically requests ordinance or law coverage at 25 percent of the building limit on fix and flip quotes, and older Florida housing stock is where it pays off most. On a pre-2007 roof or a home in a flood zone, ask whether a higher percentage is available.

What builder's risk covers on a Florida rehab

Coverage varies by policy, but a fix and flip or builder's risk policy for a Florida project commonly includes:

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Fire and lightning. A renovation with temporary wiring, torches and stored solvents carries elevated fire risk, and Florida's summer afternoon storms bring frequent lightning.

Wind and hail, if included. This is the coverage that matters most in Florida, and it is the one most often limited by an exclusion or a separate deductible. Confirm it in writing.

Theft and vandalism. Theft of installed and stored materials is a top concern on any vacant rehab. Many policies require materials to be locked up or installed, and some limit theft of materials stored off site or in transit. Florida rehabs often carry high-value items such as impact windows, which are attractive to thieves before installation.

Water damage from sudden events. A burst pipe or failed supply line can be covered. Water that enters through an open roof during a rainstorm may be treated differently, depending on whether the opening was caused by a covered loss. A Florida afternoon storm on a house with its roof tarped can turn into a dispute, so keep tarps secured and document the roof condition.

Collapse. Many policies cover sudden collapse from certain causes, such as rotted floor joists hidden under old flooring or the weight of rain on a roof.

Debris removal. After a hurricane, hauling away fallen trees, roofing and damaged materials from the lot can be expensive. Most policies include debris removal coverage with its own limit.

General liability, when bundled. A fix and flip policy typically adds general liability for injuries to third parties and damage to their property. OfferMarket's fix and flip guidelines require $1,000,000 per occurrence and $2,000,000 aggregate, meaning up to $1,000,000 for any one incident and $2,000,000 in total over the policy term (OfferMarket).

What builder's risk does not cover in Florida

Flood and storm surge. Flood is excluded, and storm surge is treated as flood. Rising water from a hurricane is a flood claim, not a wind claim. In a coastal storm, both can damage the same house, and the wind and flood policies each pay their own share. That is why a property near the coast needs both.

Earth movement and sinkholes. Fix and flip and builder's risk policies commonly exclude earth movement. Florida has its own sinkhole rules, covered below.

Pre-existing damage. A storm-damaged house bought as is will not be covered for damage that existed before the policy started. Dated photos at closing protect you.

Faulty workmanship and defective materials. The cost to redo bad work is not covered, though some policies cover resulting damage to other parts of the property.

Wear and tear, rot, rust, pests and mold. Termite damage, old plumbing and gradual deterioration are maintenance issues. Mold coverage is often excluded or capped, which matters in Florida's humid climate when a house sits open.

Worker injuries. Injuries to workers belong under the contractor's workers' compensation, not your property or general liability policy.

Flood: the FEMA 50 percent rule and the rental exit

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Flood needs a separate policy

Because builder's risk and fix and flip policies exclude flood, a property in a FEMA special flood hazard area needs a separate flood policy, and lenders require one. OfferMarket's guidelines set the flood limit at the greater of $250,000 or the loan balance (OfferMarket). NFIP flood policies normally have a 30-day waiting period, but FEMA waives it when the policy is purchased in connection with making, increasing, extending or renewing a loan (FEMA). Buy the flood policy at loan closing.

Properties outside the special flood hazard area still flood in Florida. A heavy rain event can overwhelm drainage in Orlando or Jacksonville far from any coastline. Cash buyers and investors outside mapped zones should still price a flood policy, especially for a rehab that will hold through hurricane season.

The 50 percent rule can change your scope

In flood zones, communities that participate in the NFIP enforce a substantial improvement and substantial damage rule, usually called the 50 percent rule.

The City of Miami Beach explains its local version. The city adds up the job values of building permits on a property over a rolling one-year period and divides by the value of the structure, based on the county property appraiser or a depreciated replacement cost appraisal. At 50 percent or more, the work is substantial, and the whole structure must be brought into compliance with floodplain requirements for new construction. That can mean elevating the house, using flood-resistant materials below the flood elevation and adding flood vents.

Each community sets its own procedures. Charlotte County measures the structure's market value excluding land, using an independent appraisal or the adjusted tax assessment, and compares it with the full cost of materials and labor on a detailed cost breakdown. Hillsborough County publishes its own substantial damage and improvement guidelines. Check the local rule before you finalize the budget, and before you buy if the plan depends on a large renovation.

What the rule means for insurance:

• Scope and completed value move together. If the rule pushes your project into elevation, your completed value, timeline and builder's risk premium all change. Insure the real scope, not the original one, and tell your agent when the scope changes.
• A storm during the rehab can trigger the rule. If covered damage, added to the permitted work, pushes the property past the threshold, the rebuild may have to meet new construction standards. Ask your agent how much of the cost to elevate or rebuild the house to flood code each of your policies would pay.
• Rolling lookbacks catch phased work. In communities that count permits over a rolling period, splitting the work into phases does not avoid the rule. Plan the full scope together.
• New construction starts compliant. A ground-up build in a flood zone is designed to current elevation standards from the start. NFIP rules for buildings under construction are explained in the national guide.

Plan flood for the rental before the rehab ends

If you plan to hold the property, the flood decision continues past the rehab. A rental in a special flood hazard area still needs flood insurance under DSCR loan guidelines (OfferMarket), and the flood premium changes your cash flow and your debt service coverage ratio. Quote the builder's risk, flood and landlord policies together at the start, so the numbers in your refinance are real rather than estimates. Our comparison of landlord and flood insurance explains how the two policies work together.

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⚡ Get builder's risk and landlord quotes in one request**

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Sinkholes and ground collapse

Florida's limestone geology makes ground collapse a real concern in parts of the state. Hernando, Hillsborough and Pasco counties are known as "sinkhole alley," and together they accounted for about two thirds of the sinkhole damage claims reported to the Office of Insurance Regulation from 2006 to 2010 (Insurance Journal).

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Florida law separates two kinds of coverage under section 627.706 of the Florida Statutes (Florida Statutes 627.706):

Catastrophic ground cover collapse must be covered by standard Florida property insurers, but only when all four conditions are met: the ground suddenly collapses, the hole is visible to the naked eye, the house suffers structural damage including to the foundation, and a government agency condemns the house and orders it vacated. Cracked walls and settling alone do not qualify.

Sinkhole loss is broader coverage for structural damage caused by sinkhole activity. It is optional, offered for an additional premium, and the insurer may require an inspection first. Sinkhole deductibles can be 1, 2, 5 or 10 percent of the dwelling limit.

For investors, three practical steps follow:

• Ask early. If the property is in Pasco, Hernando or Hillsborough County, or anywhere with known sinkhole activity, ask whether the rehab policy covers sinkhole loss and at what deductible. Fix and flip and builder's risk policies commonly exclude earth movement.
• Check the history. Ask the seller for any prior sinkhole claim, repair report or stabilization work, and review the inspection report for cracking patterns that suggest settlement.
• Plan the exit. Ask whether the landlord policy you expect to use after the rehab offers sinkhole coverage on that property. A house with a prior sinkhole claim may be harder to insure as a rental.

Surplus lines, taxes and carrier strength in Florida

Many Florida fix and flip and vacant home policies come from surplus lines carriers. These are insurers that are not licensed in Florida the same way as standard home insurers, but they are allowed to cover homes that standard carriers turn down, which is often the case for a vacant house under renovation near the coast. Two Florida-specific points belong on every quote review.

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The tax. Florida charges a surplus lines premium tax of 4.94 percent of gross premium, plus the Florida Surplus Lines Service Office (FSLSO) fee and other applicable state surcharges, which the surplus lines agent collects from the insured along with the premium and remits to the state (Florida Statutes 626.932). Policy and inspection fees may also apply. Compare quotes on total cost, not base premium.

No guaranty fund. If a standard Florida-licensed insurer goes out of business, the Florida Insurance Guaranty Association steps in to pay covered claims within limits. Surplus lines policyholders do not have that protection (Florida DFS). That makes carrier financial strength more important, and it is one reason lenders require an AM Best rating of A- VIII or better. Our guide to AM Best ratings explains what the rating means.

What builder's risk costs in Florida

Builder's risk is priced as a rate per $100 of insured value, so the premium grows with your completed value. Nationally, builder's risk typically costs 1 to 4 percent of the completed project value, excluding land (Insureon). Florida's coastal counties run well above that range because of hurricane exposure.

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Current indicative Florida rates show how much location matters. The figures below come from 2026 Florida builder's risk rate data based on a national carrier program. They assume concrete block (CBS) construction and a 12-month policy. The example column applies each rate range to a $300,000 completed value.

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The same data adds about 15 percent for wood frame construction compared with concrete block.

Three points help you read these numbers:

• They describe a full year of full construction value. A rehab policy can cost less when the insured value or the term is smaller. One Florida agency's 2026 estimates put a $150,000 renovation at $1,200 to $4,500.
• Distance to saltwater matters more than the county. The same source reports that projects within one mile of saltwater can see premiums double or triple compared with inland sites.
• The deductible is part of the cost. A 5 percent named storm deductible on a $300,000 completed value means the first $15,000 of a hurricane loss is yours. Compare quotes on premium and deductible together.

Because rates swing this widely across carriers and locations, the only reliable number is a quote on your property. For rehab coverage that bundles property and liability, see our Florida fix and flip insurance guide.

What pushes Florida premiums up

• Distance to the coast. Wind and flood capacity shrinks near the water (Rough Notes). A canal home in Cape Coral and a block home in Gainesville are priced very differently.
• Wood frame houses near the water. The same review identifies these as the hardest Florida rehabs to insure, and wood frame carries a higher rate even inland.
• HVHZ product costs and code upgrades. A higher completed value means a higher limit and premium.
• Long timelines. Florida extensions can be harder to obtain, and an extension may be priced on current market conditions rather than your original rate (Rough Notes). Build realistic delays into the original term.
• Surplus lines tax and fees. These are added on top of the base premium.
• Optional coverages. Sinkhole coverage, higher ordinance or law limits and broader theft coverage add premium, and in Florida they are often worth it.

What brings them down without creating a gap

• A realistic completed value, without padding
• The highest hurricane and all other perils deductibles your lender and reserves allow
• Concrete block construction, where you have the choice on a new build
• A secured house with locked doors, motion lights or cameras and a locked room for stored materials
• Quotes from multiple carriers, compared on total cost and coverage terms

You can estimate the full deal cost, including insurance, with the fix and flip calculator.

Setting the limit on a Florida project

The limit should equal the completed value of the project: the current value of the structure plus the full cost of the renovation, including labor and materials. The national guide covers the method and the coinsurance penalty for underinsuring. Florida adds a few items to the worksheet:

Code-driven costs. If the permit falls under the 8th Edition or the coming 9th Edition of the Florida Building Code, include the cost of meeting it: roof underlayment, hurricane straps and clips, and product-approved windows and doors.

HVHZ products. In Miami-Dade and Broward, use the price of Notice of Acceptance products, not the national average.

Flood compliance. If the 50 percent rule applies, include elevation, flood-resistant materials and flood vents in the completed value.

Not the land and not ARV. Land is excluded, and after-repair value is a market figure, not a rebuild cost. A waterfront lot in Naples may represent most of the ARV, but it is not part of what you insure. Our ARV guide explains the difference.

Update the limit when scope changes. If the budget grows by 20 percent, call the agent. In Florida, do it before hurricane season or before a storm forms, because binding suspensions also block coverage increases.

Contractors, permits and liability in Florida

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Workers' compensation

In Florida, a contractor with even one employee must carry workers' compensation, and in construction the owners of the contracting company count toward that number (Florida Division of Workers' Compensation). Some contractors hold an exemption instead.

Ask every contractor and subcontractor on your house, including the roofer, plumber and electrician, for a current certificate of workers' compensation coverage, or proof of a valid exemption, and a certificate of general liability insurance naming you as an additional insured where possible. If an uninsured worker is hurt on your property, the claim can come back to you.

The owner-builder exemption does not fit a flip

Florida lets property owners act as their own contractor under section 489.103(7) of the Florida Statutes, but the exemption is limited to one or two family residences built or improved for the owner's own occupancy or use and not offered for sale or lease. If the owner sells, leases or offers the property for sale or lease within one year after completion, the law presumes the work was done for sale or lease (Florida Statutes 489.103).

For investors, that means a flip or a rental rehab generally needs licensed contractors pulling permits. Unpermitted or improperly permitted work can create problems at resale, with the code official after a loss and with your insurer.

General liability

Your general liability policy responds when someone other than a worker is hurt on the property or when your project damages a neighbor's property. In Florida, the storm scenario is the one to plan for: debris from your site striking the house next door. Keep the site clean and secured, and keep the liability limit at or above your lender's requirement.

Builder's Risk Insurance Guidelines

Below are standard insurance guidelines for Florida hard money loans. These limits help keep both you and your lender protected in the state’s dynamic real estate market.

Property Insurance

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General Liability Coverage

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Flood Insurance in Florida

Flood risk is a reality for many Florida properties, especially along the coast or in low-lying areas. If your property is in a FEMA-designated flood zone, your lender may require separate flood insurance.

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Additional Details for Florida Fix and Flip Investors

If your Florida flip is lender-financed, you’ll need to use the proper mortgagee clause and notify your carrier if your property becomes vacant.

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The mortgagee clause for OfferMarket loans reads: OfferMarket Capital LLC ISAOA/ATIMA, 627 S Hanover St, Baltimore, MD 21230. Our glossary entry on the mortgagee clause explains why it matters. If you finance through OfferMarket Capital, our lending and insurance teams coordinate these requirements during underwriting and after closing.

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Hurricane loss prevention for a Florida rehab

The best claim is the one that never happens. A short plan, agreed with your contractor before work starts, covers most of the exposure.

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Before the season. Schedule roof work and window installation early, so the house is dried in by peak season if possible. Order impact windows and shutters with lead times in mind.

At a watch. Follow local site securing rules, such as Miami-Dade's protocol. Remove or tie down loose materials, empty or remove dumpsters, secure the portable toilet and move stored materials inside a locked, dried-in space.

At a warning. Shutter or board openings, secure roof tarps, shut off power to the house where appropriate and move uninstalled appliances, fixtures and tools into a locked, dried-in room or off the property. Take dated photos.

After the storm. Inspect for hazards before entering. Make temporary repairs, start drying out water damage quickly to limit mold, report the claim and keep every receipt.

All year. Florida's afternoon storms bring lightning and heavy rain even outside named storms. Keep roofs tarped securely, temporary wiring safe and stored solvents away from ignition sources.

The rental exit: setting up a cheaper Florida landlord policy

The rehab is the best chance to lower the cost of insuring the finished rental. Florida's landlord market rewards features you can add while the walls and roof are open.

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Document wind mitigation. Florida uses the Uniform Mitigation Verification Inspection Form, OIR-B1-1802, to document a home's construction and mitigation features so policyholders can qualify for windstorm premium discounts. The Office of Insurance Regulation has proposed an updated version tied to a 2024 wind loss mitigation study (Radey Law). Features the form looks at include roof covering, roof deck attachment, roof-to-wall connections, roof shape, secondary water resistance and opening protection. Schedule the inspection when that work is complete, and keep product approvals, permits and invoices for the inspector.

Mind the roof age. Florida law bars insurers from refusing to issue or renew a homeowner's policy solely because the roof is less than 15 years old. For roofs 15 years or older, insurers must allow an inspection, and cannot refuse coverage for roof age alone if the inspection shows at least 5 years of useful life left (Florida Statutes 627.7011). The statute refers to homeowner's policies, and landlord policies may be underwritten differently. A new roof during the rehab remains one of the strongest moves for insurability and price on a Florida rental.

Quote flood with the landlord policy. In a flood zone, your DSCR lender will expect both, so price them together before you decide to hold.

Bind the landlord policy before the tenant moves in. Occupancy can end builder's risk coverage, so put the landlord insurance policy in place first, then cancel the rehab policy and request any pro rata refund. Our DWG-3 policy guide explains how landlord property coverage works.

Florida playbooks by market and strategy

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Miami-Dade and Broward rehabs

Expect HVHZ product requirements for windows, doors and roofing, higher completed values and site securing duties under the county hurricane protocol. Price the hurricane deductible carefully on a higher limit, and confirm the 50 percent rule before scoping work in a flood zone such as much of Miami Beach. Miami had one of the lowest flip rates among large metros in the first quarter of 2026, at 5.5 percent (ATTOM), so a deal that pencils there often depends on tight cost control, and insurance is part of that cost.

Tampa Bay and Southwest Florida flood-zone flips

Fort Myers, Cape Coral, Naples, St. Petersburg and the Tampa Bay coast took major damage from Hurricane Ian in 2022 and Hurricanes Helene and Milton in 2024. Many properties for sale there are storm-damaged, which makes the substantial damage and substantial improvement rules central to the deal. Get the local determination before you buy, insure the true scope and bind flood at closing. With all-cash buying so common in Naples and Cape Coral (ATTOM), set the coverage a lender would require even without a lender.

Pasco, Hernando and Hillsborough: the sinkhole belt

Add sinkhole coverage to the conversation before closing. Review the seller's disclosures for any prior sinkhole claim or stabilization work, and confirm whether the policy covers sinkhole loss during the rehab and what the deductible is.

Jacksonville, Orlando and inland markets

Inland projects face less storm surge but still carry hurricane wind, heavy rain and flood exposure. Do not skip the flood zone check because a property is far from the beach, and keep the hurricane deductible in the budget. Lower coastal exposure can mean more carrier options and better pricing.

The Panhandle, the Keys and the Treasure Coast

The Panhandle from Pensacola to Panama City, the Florida Keys and the Treasure Coast all combine coastal wind exposure with flood risk. Wood frame houses near the water are the hardest to insure during a rehab (Rough Notes), so start the quote early and expect fewer carrier options.

Ground-up and infill builds

Building a new single-family home, duplex or townhome on a lot is where standalone builder's risk fits best. Put coverage in place before materials arrive, insure to full completed value under the current Florida Building Code, add general liability separately and plan for code changes if your permit falls near the 9th Edition effective date. Estimate financing with the construction loan calculator and our ground-up construction loan page.

BRRRR in Florida

Use the rehab to set up the rental: new roof, opening protection and a wind mitigation inspection before you shop the landlord policy. Get the landlord and flood quotes through OfferMarket, then run the refinance math with the DSCR calculator. Our BRRRR method guide covers the full strategy.

The OfferMarket recipe for Florida builder's risk

1. Check the property first. Flood zone, local 50 percent rule, roof age and permit history, and sinkhole history in at-risk counties.
2. Set the completed value. Purchase value of the structure plus the full rehab budget, including Florida code and HVHZ costs.
3. Choose the policy type. Fix and flip bundle for most vacant rehabs, standalone builder's risk plus liability for new construction.
4. Confirm wind and the hurricane deductible. No wind exclusion on a financed deal, and reserves sized to the deductible.
5. Add the Florida coverages. Ordinance or law, flood where needed and sinkhole where the risk exists.
6. Bind early. Before closing and before any storm watch.
7. Run the job like a storm can come any week. Site securing plan, contractor certificates and dated photos.
8. Plan the exit. Wind mitigation inspection, landlord policy and flood before the tenant moves in.

Florida builder's risk checklist

• ✅ Policy bound before closing, and before any storm watch
• ✅ Wind included, with no windstorm or named storm exclusion
• ✅ Hurricane deductible known, and cash reserves sized to it
• ✅ Flood zone checked; flood policy bound at closing if required
• ✅ Local 50 percent rule reviewed before the scope is final
• ✅ Limit set on completed value, including HVHZ products and code upgrades
• ✅ Ordinance or law included, especially on pre-2007 roofs
• ✅ Sinkhole coverage decision made where the risk exists
• ✅ Surplus lines tax and carrier rating reviewed
• ✅ Contractor workers' compensation and liability certificates on file
• ✅ Storm preparation written into the contractor agreement
• ✅ Vacancy permission, theft coverage for stored materials and general liability confirmed
• ✅ Wind mitigation inspection scheduled before the landlord policy is quoted
• ✅ Landlord policy bound before the tenant moves in

How OfferMarket Insurance works

Submit your property details once, and OfferMarket compares fix and flip, builder's risk and landlord coverage across 40+ carriers. Our team checks each quote against the requirements that matter in Florida, including wind coverage, the hurricane deductible, flood and lender requirements, before you bind. If your project changes, we help adjust the limit, extend the term or move the property to a landlord policy when the rehab is done.

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Frequently asked questions

Do I need builder's risk insurance for a flip in Florida?

If the property is vacant and under renovation, a homeowners policy is the wrong fit, and lenders require property and liability coverage before closing. A fix and flip policy that combines builder's risk style property coverage, a vacancy provision, wind coverage and general liability is the common solution (OfferMarket).

Does builder's risk cover hurricane damage in Florida?

It can, if wind is included. Some vacant and renovation policies exclude wind or offer it only as an option, and Florida insurers must offer a windstorm exclusion. Lenders require wind coverage, and a separate hurricane deductible usually applies (Florida DFS).

What is the hurricane deductible on a Florida policy?

Florida residential policies offer hurricane deductibles of $500, 2 percent, 5 percent or 10 percent of the dwelling limit, and the $500 option is not required at $250,000 or more. Surplus lines policies may differ (Florida DFS).

Can I buy coverage when a hurricane is approaching?

Often not. Citizens and many private carriers suspend binding new coverage and coverage increases once a tropical storm or hurricane watch or warning is issued for any part of Florida. Bind well before a storm forms.

Does builder's risk cover flood or storm surge in Florida?

No. Flood, including storm surge, requires a separate policy. In a special flood hazard area, lenders require it, and buying it at loan closing avoids the 30-day waiting period (FEMA).

What is the FEMA 50 percent rule?

In flood zones, if improvements or damage reach 50 percent of the structure's value, the building must be brought up to current floodplain standards, which can include elevation. Communities apply it differently; Miami Beach, for example, uses a rolling one-year total of permit values (City of Miami Beach).

Does builder's risk cover sinkholes in Florida?

Usually not. Florida requires property insurers to cover catastrophic ground cover collapse when strict conditions are met, but broader sinkhole coverage is optional and costs extra (Florida Statutes 627.706).

How long do I have to file a claim in Florida?

Notice of an initial property insurance claim must be given within 1 year after the date of loss, and a supplemental claim within 18 months (Florida Statutes 627.70132).

Can I act as my own contractor on a Florida flip?

Generally not. Florida's owner-builder exemption applies to homes built or improved for the owner's own use, and selling or leasing within one year after completion creates a presumption that the work was done for sale or lease (Florida Statutes 489.103).

How much does builder's risk cost in Florida?

It depends heavily on location. Current indicative Florida rates run from about $1.20 to $3.00 per $100 of insured value inland to $4.50 to $10.00 per $100 in Miami-Dade and Broward, based on concrete block construction and a 12-month policy (Florida rate data). Nationally, builder's risk typically costs 1 to 4 percent of completed value (Insureon). Wood frame construction, proximity to saltwater and surplus lines tax push premiums up.

Is OfferMarket a licensed insurance agency?

Yes, through OfferMarket Insurance LLC (NPN 20545557), which holds individual state insurance licenses and quotes, binds and services a portion of the insurance inquiries submitted on OfferMarket. See the full list on our licenses page.

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Protect and grow your portfolio with OfferMarket

Builder's risk insurance is a line of defense for the most exposed months of any deal, and in Florida it has to work alongside the building code and the storm calendar. Between hurricane deductibles, binding suspensions, the 50 percent rule, older roofs and flood exposure far from the beach, experienced Florida investors know that protecting capital during a rehab matters as much as the profit at the end of it.

OfferMarket's insurance platform works for a first flip in Orlando and for a pipeline of rehabs from Miami-Dade to the Tampa Bay coast. We check the coverage, the deductibles and the lender requirements so that you can focus on the project.

Protect your capital. Protect your reputation. Protect your future in Florida real estate.

OfferMarket serves Florida investors at every stage, from duplex rehabs in Jacksonville to BRRRR rentals in Cape Coral and infill new construction in Broward County. ⚡ Get my instant quote**

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