Builder’s Risk Insurance for Florida Roofing Companies: Protecting Projects in Progress from Storms, Theft, and Costly Delays

For Florida roofing companies, few situations are more stressful than when a project is damaged while still under construction. Materials are delivered, the existing roof is partially removed, and then a storm rolls in, theft occurs overnight, or a fire breaks out. Suddenly, a profitable job turns into a financial nightmare.

This is where builder’s risk insurance plays a critical role.

Builder’s risk insurance is often misunderstood, overlooked, or incorrectly assumed to be someone else’s responsibility. Many roofers believe the property owner’s insurance will cover everything. Others assume general liability insurance applies. Unfortunately, when a loss occurs, these assumptions often lead to denied claims and costly disputes.

This article explains how builder’s risk insurance works for Florida roofing companies, when they need it, what it covers, common claim scenarios, and how it fits into a complete risk management strategy for both residential and commercial roofing projects.

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What Is Builder’s Risk Insurance?

Builder’s risk insurance is a temporary property insurance policy that covers buildings and materials while construction or renovation is in progress.

For roofing companies, builder’s risk insurance may cover:

• The structure being worked on
• Roofing materials on site
• Materials in transit
• Partially completed work
• Temporary structures and scaffolding

The policy typically remains in force only for the duration of the project and ends once the work is completed or the project is occupied.

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Why Builder’s Risk Is Critical for Roofing Companies in Florida

Florida presents a perfect storm of risk factors that make builder’s risk coverage especially important for roofers.

Sudden and Severe Weather

Florida weather is unpredictable. Thunderstorms can form quickly, and tropical systems can intensify with little warning. A roof that is partially removed is extremely vulnerable to water intrusion and wind damage.

Without builder’s risk insurance, damage to the project itself may not be covered under any policy.

High Theft Rates at Jobsites

Construction sites are prime targets for theft, especially after hours. Roofing materials are valuable, portable, and easy to resell.

Builder’s risk insurance can cover stolen materials that have not yet been installed.

High-Value Properties

Many Florida roofing projects involve expensive homes, condominiums, hotels, and commercial buildings. A single loss can involve hundreds of thousands or even millions of dollars in damage.

Builder’s risk insurance helps prevent a loss from becoming financially catastrophic.

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Common Misconceptions About Builder’s Risk Insurance

Builder’s risk is one of the most misunderstood coverages in construction.

“The Property Owner’s Insurance Covers It”

In many cases, the property owner’s policy excludes damage related to construction or renovation. Even if coverage applies, disputes often arise over responsibility, deductibles, and delays.

“General Liability Insurance Covers Damage to the Job”

General liability insurance is designed to cover damage to third-party property, not damage to the work itself. Builder’s risk insurance is what covers the project during construction.

“We’ve Never Needed It Before”

Past luck does not reduce future risk. Many roofing companies only learn about builder’s risk after experiencing an uncovered loss.

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Who Should Carry Builder’s Risk Insurance?

Builder’s risk insurance can be carried by:

• The property owner
• The general contractor
• The roofing contractor

The correct party depends on contract language.

Roofing companies should never assume coverage is in place without verifying:

• Who is responsible for providing builder’s risk
• What limits are carried
• Which perils are covered
• Whether roofing operations are included

If a contract requires the roofer to provide builder’s risk and it is not in place, the roofer may be responsible for the loss.

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What Builder’s Risk Insurance Covers for Roofers

Builder’s risk insurance typically covers physical loss or damage caused by:

• Fire
• Windstorms
• Theft
• Vandalism
• Lightning
• Certain water damage

Coverage applies to:

• Roofing materials awaiting installation
• Materials stored on site or nearby
• Partially completed roofing work
• Temporary structures used during the project

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Builder’s Risk and Wind Coverage in Florida

Wind coverage is one of the most important aspects of builder’s risk insurance in Florida.

Key considerations include:

• Whether wind is included or excluded
• Named storm deductibles
• Percentage-based deductibles
• Waiting periods for coverage

Some builder’s risk policies exclude wind entirely unless specifically endorsed. This can be disastrous for roofing companies in Florida.

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Water Intrusion and Open Roof Exposure

Water intrusion during construction is one of the most common and expensive roofing losses.

Builder’s risk insurance may cover water damage caused by rain entering an open roof, depending on policy terms.

Coverage may require:

• Reasonable protective measures
• Temporary coverings or tarps
• Compliance with weather monitoring procedures

Failing to follow required precautions can jeopardize coverage.

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Materials in Transit and Storage

Builder’s risk insurance can cover materials while they are:

• In transit to the jobsite
• Temporarily stored at a warehouse
• Stored at the jobsite awaiting installation

This is especially important for roofing materials that may sit on site for days or weeks before being installed.

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Residential Roofing and Builder’s Risk

Builder’s risk is not just for large commercial projects.

Residential roofing projects that may benefit from builder’s risk include:

• Full roof replacements
• Structural roof repairs
• High-value homes
• Projects with extended timelines

Homeowners may not realize their insurance policy excludes construction-related losses.

Roofers who educate clients on builder’s risk can avoid disputes and strengthen trust.

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Commercial Roofing and Builder’s Risk

Commercial exposures include:

• Large flat roofs
• Multi-tenant buildings
• Condominiums and HOAs
• Hotels and retail centers

Losses on commercial projects can be severe and involve multiple parties, increasing the importance of proper coverage.

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What Builder’s Risk Insurance Does Not Cover

Builder’s risk policies have exclusions.

Common exclusions include:

• Faulty workmanship
• Design defects
• Normal wear and tear
• Mechanical breakdown
• Delay-related losses unless endorsed

Understanding these exclusions helps set realistic expectations.

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Deductibles and Retentions

Builder’s risk deductibles can be significant.

In Florida, wind deductibles may be:

• Flat dollar amounts
• Percentage-based
• Higher for named storms

Roofing companies should understand how deductibles are allocated in contracts.

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Claims Scenarios Roofing Companies Face

Common builder’s risk claims include:

• Storm damages partially installed roof
• Materials stolen overnight
• Fire damages roof during installation
• Wind blows unsecured materials into the structure
• Vandalism at an unattended site

In each case, builder’s risk coverage may be the difference between a covered loss and a financial disaster.

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Risk Management During Roofing Projects

Insurance works best when combined with good practices.

Effective risk management includes:

• Monitoring weather forecasts
• Securing materials daily
• Using temporary coverings correctly
• Removing debris promptly
• Documenting site conditions

Many builder’s risk policies require reasonable care to protect property.

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Contract Language Matters

Roofing contracts should clearly define:

• Who provides builder’s risk
• Coverage limits
• Deductibles
• Covered perils

Ambiguous contracts lead to disputes after losses.

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How Builder’s Risk Fits Into a Complete Insurance Program

Builder’s risk insurance works alongside:

• General liability insurance
• Inland marine coverage
• Workers’ compensation
• Commercial auto insurance

Each policy addresses a different part of the risk.

No single policy covers everything.

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Final Thoughts: Builder’s Risk Protects Profits, Not Just Projects

Roofing companies make money by completing projects on time and on budget.

Builder’s risk insurance protects:

• Materials
• Labor
• Cash flow
• Client relationships

Without it, a single storm or theft can erase profits from an entire job.