Is Builders & Vacant Risk Insurance Mandatory in Florida?

If you look everywhere in Florida, there is always an upcoming building. While the Sunshine State is exploding with constructions, ever thought about insurance to protect all these projects? Builder’s insurance from McCormick Insurance Inc. in Pembroke Pines, FL protects buildings when undergoing renovations or under construction. On the other hand, we also provide vacant risk insurance to cover your home if left vacant for a certain period.

Are builders and vacant risk insurance mandatory?

Builder’s risk insurance protects your building against damage or loss from perils like lightning, theft, fire, vandalism, and so on. Most of the time, the contractor buys the insurance policy but confirms from the contract agreement as it usually states who should purchase the coverage. Typically, builder’s insurance doesn’t cover liabilities. Liabilities are either covered by general liability coverage or home insurance, in case it’s a home being constructed.

Some local authorities may need proof of the builder’s risk insurance before issuing construction permits. Also, the county or state governments may need this insurance policy as proof that you comply with the building code.

On the other hand, vacant risk insurance isn’t mandatory in Florida. However, it would help if you have it when your home is unoccupied for a certain period. Why? Home insurance doesn’t provide coverage against losses and damages that occur to your home during this time.

Who needs builder’s risk insurance?

Anyone interested in the building requires a builder’s risk insurance policy. Some people who may need this insurance include:

  • Homeowners/property owners
  • Architects /engineers
  • Contractors
  • Subcontractors
  • Lenders

Want to invest in builders & vacant risk insurance in Pembroke Pines, FL? Getting an insurance agent that offers these policies can be frustrating, but this is no longer the case because McCormick Insurance Inc. has got you covered. Contact us today for affordable coverage.