Question 1

Will my homeowners policy cover renovation work?

Accepted Answer

Generally no, not for major renovations. Most homeowners policies specifically restrict or exclude coverage during construction work that exposes the structure (open walls, removed roofs, gut renovations). Minor work like interior painting or small repairs typically doesn't trigger restrictions, but anything that materially exposes the structure to weather or removes structural elements typically requires separate builders risk coverage. Always notify your homeowners carrier before starting work to understand what's covered and what isn't.

Question 2

What's covered during renovation?

Accepted Answer

Builders risk coverage during renovation typically includes the new construction (additions, restored sections), materials and equipment on site, materials in transit, theft and vandalism during construction, fire and weather damage to in-progress work, and (with endorsements) soft costs from construction delays. The existing structure remains the homeowners policy's responsibility with appropriate notification. Coverage starts at construction commencement and ends at substantial completion or first occupancy, whichever is earlier.

Question 3

Who buys the builders risk — owner or contractor?

Accepted Answer

Either can buy, depending on the construction contract. Owner-purchased policies are common on residential renovations, especially when homeowners want direct control. Contractor-purchased policies are common when general contractors prefer to manage insurance. The contract should explicitly state who buys, what limits are required, what the deductible structure is, and who's named insured. Ambiguity here causes disputes when claims occur. Most Florida residential renovation contracts now specify the homeowner as the responsible party for builders risk on owner-occupied jobs.

Question 4

What's the hurricane exposure during renovation?

Accepted Answer

Partially-completed structures during hurricane season face dramatically higher wind exposure than finished homes — open roofs, missing windows, exposed framing, and uncovered structural elements. Florida builders risk policies on residential renovations typically apply 5%–10% wind/named-storm deductibles plus require documented hurricane preparedness during active construction. Best practice is scheduling major work outside hurricane season (December–May) when feasible. For storm-season work, hurricane plans require fast structure-securing capabilities.

Question 5

Are contractors required to carry their own insurance?

Accepted Answer

Yes — Florida licensed contractors are typically required to carry general liability, workers' compensation (if 1+ construction employees), and commercial auto. Best practice for homeowners is to require certificates of insurance from all contractors with the homeowner named as additional insured. This protects the homeowner from contractor-caused losses (a contractor's employee injured on the job, contractor negligence damaging neighbor property). Always verify contractor insurance is current before the job starts.

Question 6

What about post-Surfside recertification work?

Accepted Answer

Florida's Building Safety Act requires 50-year structural recertification for buildings 3+ stories, plus milestone inspections at 25 years (coastal) and 30 years (other). When inspections identify structural issues requiring repair, builders risk and renovation insurance covers the construction work. Condo associations and HOAs face additional fiduciary exposure for the decisions around recertification and repair scope. Coverage should be coordinated between the association's general policy, individual unit owners' policies, and contractor builders risk for major repair projects.

Question 7

How is renovation insurance priced?

Accepted Answer

Premium = total project value × rate (driven by construction class, complexity, and duration) × Florida wind exposure × deductible structure. Typical Florida residential renovation builders risk runs 0.50%–1.50% of project value annually. A $500K renovation might cost $2,500–$7,500 for builders risk coverage during construction. Pricing reflects construction duration (longer projects cost more), structural complexity, and weather exposure during active work. Hurricane-season-active projects load premium for wind risk during work.

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