How Much Does Builders Risk Insurance Cost in Florida?

When buying builder’s risk insurance, you must ask yourself: How much will builders risk insurance cost and whether you need it for your business? Some clients may not know it, but this policy is more affordable than they think. Because Florida is a high-risk state for natural disasters, insurance premiums will increase by 30% between 2021 and 2022. Homeowners have to pay some of the most expensive premiums in the country. By 2023, the average annual premium will be approximately $10,996, more than four times the national average of $2,377. Due to severe weather events (especially hurricanes), there’s a disparity compared to the rest of the country, which has led to increased claims and higher costs. If you have a budget of $100,000 for a renovation, the policy will cover between $1,000 and $5,000. While the cost of builder’s risk insurance varies, most companies pay between 1% and 5% of the total cost of the construction project.