New Home Construction in Florida: Insurance During and After Building

Building a new home in Florida is exciting, but insurance during and after construction requires careful planning. Understanding your coverage options protects your investment from start to finish.

Insurance During Construction

Builder Risk Insurance

Also called course of construction insurance, this covers the structure while being built:

• Fire and explosion damage
• Wind and hail damage
• Theft of materials
• Vandalism
• Some natural disasters

Your builder typically carries this coverage, but verify the policy details and coverage amounts.

What Builder Risk Usually Excludes

• Flood damage (requires separate policy)
• Earthquake damage
• Normal settling and cracking
• Faulty workmanship (covered by warranty)
• Materials stored off-site (unless added)

Questions to Ask Your Builder

• Who carries the builder risk policy?
• What is the coverage amount?
• Does it cover flood and wind damage?
• When does coverage transfer to you?
• Are your deposits or payments protected?

Transitioning to Homeowners Insurance

You need standard homeowners insurance before:

• Closing on your new home
• Moving in (if before closing)
• Builder risk coverage ends

Lenders require proof of insurance before releasing construction loan funds at closing.

Advantages of Insuring a New Florida Home

Built to Current Codes

New Florida homes must meet current building codes, including:

• Hurricane-resistant construction
• Modern roof attachments
• Impact-resistant features in some areas
• Updated electrical and plumbing

These features qualify for significant insurance discounts.

Better Wind Mitigation Credits

New construction typically includes:

• Proper roof-to-wall connections
• Hip roof designs
• Secondary water resistance
• Impact-rated openings

Newer Roof = Lower Rates

A brand-new roof means no age-related surcharges or coverage restrictions.

Coverage Considerations for New Homes

Guaranteed Replacement Cost

Construction costs fluctuate. Guaranteed replacement cost coverage ensures your home can be rebuilt regardless of cost increases.

Building Ordinance Coverage

Even new homes may need this coverage for future code changes.

Flood Insurance

If your new home is in or near a flood zone, secure flood insurance early. Remember the 30-day waiting period.

Getting Your Wind Mitigation Inspection

Schedule a wind mitigation inspection as soon as construction is complete. This documents all the discounts your new home qualifies for:

• New roof covering
• Proper roof deck attachment
• Strong roof-to-wall connections
• Impact protection
• Hip roof geometry

Building a new home in Florida? Contact us to discuss coverage options and take advantage of new construction discounts.