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After Hurricane Isaias: A Fall Home Insurance Checkup for Florida Families

Posted on by webbuilder in Blog, Home Insurance |

Hurricane Isaias, the first hurricane of the 2026 Atlantic season, made landfall near Destin on October 9 as a Category 2 storm, according to the National Hurricane Center. It’s a good reminder for families across North Central and Northeast Florida to take a fresh look at their home insurance.

Hurricane season runs through November 30, and fall is a good time to spend 20 minutes with your homeowners policy. Here’s what we’d look at with you.

If Isaias Left Damage, Don’t Wait to Report It

If you found missing shingles, a damaged fence or a tree limb on the roof after the storm, take photos, make reasonable temporary repairs to prevent more damage (tarping a roof, for example), keep your receipts and call us or your insurance company.

Florida law also puts a clock on claims. Under section 627.70132 of the Florida Statutes:

  • A new or reopened property claim must be reported to your insurer within 1 year after the date of loss.
  • A supplemental claim (more damage from the same event that you find later) must be reported within 18 months after the date of loss.
  • For hurricane claims, the date of loss is the date the hurricane made landfall.

Small roof damage can turn into a leak months later, so if you aren’t sure, ask now.

Know How Your Hurricane Deductible Works

Florida home policies usually have two deductibles: one for hurricane losses and one for everything else (often called “All Other Perils”). The hurricane deductible is the one that surprises people.

When it applies. Under Florida law, the hurricane deductible covers damage during a specific window. It starts when the National Hurricane Center issues a hurricane warning for any part of Florida. It ends 72 hours after the last hurricane watch or warning for any part of Florida ends (section 627.4025). That’s why a storm that comes ashore hundreds of miles away can still put wind damage at your house under your hurricane deductible.

How much it is. Hurricane deductibles are often a percentage of your dwelling coverage, not a flat dollar amount. Insurers must offer choices of $500, 2%, 5% and 10% of the dwelling limit, with some exceptions for higher-value homes (section 627.701). Your insurer has to print the actual dollar amount on your declarations page. For example only: on a home insured for $500,000, a 2% hurricane deductible is $10,000.

It’s once per calendar year. Florida’s hurricane deductible applies on an annual basis. If you have a hurricane claim this year and another hurricane causes damage later in the same calendar year, with the same insurer or another insurer in the same group, you generally pay the greater of what’s left of your hurricane deductible or your All Other Perils deductible.

Do you know your hurricane deductible in dollars, and could you cover it from savings? If not, let’s talk about the trade-offs.

Check That Your Dwelling Limit Still Fits Your Home

Your dwelling coverage (Coverage A) should reflect what it would cost to rebuild your home today, not what you paid for it or what it would sell for. If you’ve redone the kitchen, added a pool or finished a bonus room since the policy was written, your limit may be behind.

Florida law requires insurers to offer replacement cost coverage on the home itself (section 627.7011). Replacement cost pays to repair or rebuild without taking off for wear and tear. Make sure that’s what you have. Ask whether you have extended replacement cost or an inflation guard, too.

Look Closely at Your Roof and Water Coverage

Two parts of Florida home policies have changed a lot in recent years:

  • Roofs. Some policies now pay roof claims on a schedule based on the roof’s age and material, and some carry a separate roof deductible. Your declarations page and endorsements will tell you which applies.
  • Water damage. Many insurers cap water damage on older homes. We covered that in Is Your Water Damage Coverage Only $10,000?

Remember: Home Insurance Doesn’t Cover Flood

Rising water from heavy rain or storm surge is flood, and a standard homeowners policy doesn’t cover it. Flood coverage is a separate policy, or in some cases an endorsement. NFIP flood policies generally take 30 days to start, so it’s not something to buy when the next storm shows up in the forecast. Our flood insurance guide walks through the options. If you’re insured with Citizens, note that its flood requirement expands to homes of every value starting with new and renewal policies effective on or after January 1, 2027 (condo unit-owner and renters policies are exempt) (details here).

For Families With More to Protect

If your home, savings and family have grown, your coverage should keep up:

  • Jewelry, art, watches and collectibles. Standard policies limit theft coverage for many valuables. Scheduling items separately can give broader coverage.
  • Personal umbrella liability. Teen drivers, a pool, a dock or a busy social calendar all add liability exposure. An umbrella policy adds a layer above your home and auto limits.
  • Wind mitigation credits. Florida insurers must offer discounts or deductible credits for qualifying hurricane-resistant features (section 627.0629). If you’ve added impact windows, a new roof or roof straps, make sure your insurer has a current wind mitigation report.

Let’s Review It Together

McGriff-Williams has helped North Central and Northeast Florida families with their insurance since 1983. As an independent agency, we compare options from multiple insurance companies for you, and we’ll explain your options in plain English. Call us at (352) 371-7977, stop by 3501 West University Ave. in Gainesville, or request a quote or policy review.

General information, not legal or coverage advice. Coverage depends on the policy issued, its terms and underwriting. Information current as of October 2026; confirm details with your agent or insurer. McGriff-Williams Insurance is an independent insurance agency licensed in Florida.

When the Freezer Gets Hacked: Insurance Gaps Florida Businesses Should Know

Posted on by webbuilder in Blog, Business Insurance |

From McGriff-Williams Insurance, an independent agency in Gainesville since 1983. Where confidence grows.

When most business owners picture a cyberattack, they think of locked computers, stolen customer data or a ransom note. In October 2026, an attack in France showed that a hack can reach something far more physical: the freezer case.

If you run restaurants or retail locations in Florida, own apartment or commercial buildings, store goods cold, or install and service building controls, this story is worth a few minutes. The bigger lesson isn’t about technology. It’s about which insurance policy, if any, pays when a hack ruins your inventory. We’ll walk through what happened, where the gaps can be, and the questions to bring to your next coverage review.

What Happened in France

On the night of Sunday, October 11, into Monday, October 12, 2026, attackers remotely accessed the refrigeration controls at hundreds of supermarkets across France. Reported counts vary, from at least 350 stores to roughly 700, according to news reports.

According to public reporting, the attackers reached controllers that were connected to the internet. They switched refrigerated and frozen cases into defrost mode, removed the limits that normally keep temperatures in check, and set some cases to around 122°F (50°C). Early findings suggested alarms were disabled or avoided. Cases ran hot for roughly four to six hours before morning staff discovered the problem. Food thawed and began to cook. A few stores reported small fires, which set off sprinklers and caused water damage.

Most stores stayed open. They threw out affected product, restocked, and recovered within hours to about a day. The losses still added up. One chain’s leadership estimated about €50,000 in losses for an average store. Another reported up to €200,000 for a single large hypermarket, and industry leaders said the total could reach tens of millions of euros.

Several things were still unknown as of mid-October 2026:

  • Who did it. No one had claimed responsibility, and investigators had not publicly named a suspect. Attribution remains unconfirmed.
  • Exactly how. Officials had not publicly confirmed the precise method used to get in.
  • Why. The motive is unknown. No ransom demand was reported.

The Paris prosecutor’s office opened a cybercrime investigation, and France’s national cybersecurity agency warned that attack campaigns were probably still underway. Equipment makers said many affected units were older models that no longer receive security updates. Security researchers also pointed to devices left exposed to the public internet and, in some cases, apparent default passwords. France’s economy minister called it “a wake-up call for everyone.”

Why It Matters Here in Florida

Grocery stores, restaurants, convenience stores and cold-storage facilities here can rely on connected refrigeration controls, and some are monitored remotely by a refrigeration contractor. That’s convenient, but it also creates a door into the system that needs to be locked.

The U.S. Cybersecurity and Infrastructure Security Agency (CISA) has published advisories describing security flaws in commercial refrigeration controllers, along with available fixes. Whether those particular flaws played a role in France has not been confirmed. Either way, the risk isn’t limited to Europe.

Here’s how the lesson can apply to the Florida businesses we work with:

  • Multi-unit restaurants and retail. If one remote connection reaches the coolers at several of your locations, one bad night could mean spoiled stock at all of them at once. That can change how your deductibles and waiting periods apply.
  • Real estate and apartments. If your buildings use connected HVAC, access or other building controls, ask who can reach those systems remotely, and whose policy would respond if a shared system were tampered with.
  • Wholesale and light manufacturing. If you hold product in coolers or freezers, the same question applies: what happens to the inventory if the temperature controls are changed remotely?
  • Contractors who install or service controls. If your team has remote access to customers’ refrigeration, HVAC or building systems, your customers may start asking how that access is secured and what insurance stands behind it.

The Surprise: Whose Policy Pays for the Spoiled Food?

French grocery leaders said publicly that their insurers had told them this kind of loss was not covered. Insurance brokers told Reuters that cyber policies typically exclude physical losses. Here’s why that gap can exist in the U.S. as well:

  • Many cyber policies exclude physical damage. Spoiled food is tangible property. A cyber policy may pay for investigating the hack but not for the inventory you had to throw away.
  • Many property policies now exclude cyber events. In recent years, insurers have added cyber exclusions to many commercial property forms.
  • Spoilage coverage often has narrow triggers. Spoilage coverage is commonly tied to a mechanical breakdown or a power outage. In France, the equipment did what it was told to do. Whether a remote change to temperature settings counts as a “breakdown” depends on your policy wording.

The result is that the largest dollar loss, the spoiled stock, can fall between policies. French insurance commentators noted that lost profit on unsold goods might be recoverable in some cases, while the cost of the discarded stock itself might not be.

Fire can be different. Some property policies cover a fire that results from a cyber incident, and others don’t.

What a Cyber Policy May Help With

Depending on its terms, a cyber policy may still help pay for:

  • Forensic investigation to find out how the attackers got in
  • Restoring and reconfiguring affected systems
  • Some lost income while systems are down, usually after a waiting period
  • Legal and public relations help
  • Extortion costs, if a ransom is demanded

A lot depends on how your policy defines your “computer system.” Some definitions include equipment like refrigeration and building controls. Others may not, especially if a vendor owns or operates the device.

Questions to Ask About Your Coverage

Bring these questions to your next insurance review:

  1. Does my cyber policy treat connected equipment, like refrigeration, HVAC or building controls, as part of my computer system?
  2. Does it include any coverage for physical damage or spoiled inventory caused by a hack?
  3. Does my property or spoilage coverage exclude cyber events? If so, is any coverage given back?
  4. What triggers my spoilage coverage? Is it only mechanical breakdown or power outage?
  5. If 20 of my locations are hit in the same night, how do my deductibles and waiting periods apply?
  6. Does my policy have a war or state-sponsored attack exclusion, and how would it apply if a government blamed another country?

Don’t Forget Your Vendors

In France, discussion quickly turned to who was responsible for securing the equipment. Ask yourself:

  • Who has remote access to your refrigeration and building systems?
  • Does your service contract say who is responsible for security, updates and passwords?
  • Does your vendor carry insurance that could respond if its access is used in an attack?

France’s government cybersecurity alert also offered a useful reminder: check your insurance contract conditions before cutting off your refrigeration contractor’s remote monitoring connection. Some policies or service agreements may require that monitoring, so check with your agent and your contractor first.

We can help with the paperwork side of this, too. For property owners, we can review the insurance requirements in your leases. That review looks only at insurance terms. It isn’t legal advice, so have your attorney review the lease itself.

Practical Steps to Consider This Month

Talk with your refrigeration contractor and IT provider about these steps, drawn largely from French and U.S. government cybersecurity guidance:

  1. Make a list of every connected refrigeration and building controller you have, with make, model and software version.
  2. Get them off the open internet. Remote access should run only through a secured connection.
  3. Update or replace outdated units. Equipment that no longer gets security updates is hard to protect.
  4. Change default passwords and remove accounts nobody uses.
  5. Check defrost schedules and temperature limits, especially after any suspicious activity.
  6. Add an independent temperature alarm that doesn’t rely on the controller itself.
  7. Set an overnight plan so someone gets the alert and knows what to do.

If you’d like a starting point, ask us about our cyber risk assessment. It’s a review of your cyber exposures and how your insurance lines up with them, not a technical security audit or certification, so keep working with your IT provider and refrigeration contractor on the steps above.

If It Happens to You

Work with your refrigeration contractor and IT provider to cut off outside access to the affected systems, keeping your policy and contract conditions on remote monitoring in mind. Document everything: photos of cases, temperature readings, and a log of every item you discard with its cost. Notify your insurance agent and insurance companies promptly under every policy that might apply, including cyber, property and any spoilage or equipment breakdown coverage. Report the incident to law enforcement (for U.S. businesses, the FBI’s Internet Crime Complaint Center at ic3.gov).

Frequently Asked Questions

Does cyber insurance pay for food that spoils after a hack?
Often not. Many cyber policies exclude physical damage, and spoiled food is tangible property. A cyber policy may still help with investigation, system restoration and some lost income. It depends on your policy wording.

Would my spoilage coverage pay instead?
Maybe. Spoilage coverage is commonly tied to a mechanical breakdown or a power outage. Whether a remote change to temperature settings counts as a breakdown depends on the wording, and some property policies exclude cyber events altogether.

Was the French attack ransomware?
There’s no sign it was. No ransom demand was reported, no one had claimed responsibility, and attribution was unconfirmed as of mid-October 2026.

What should I do first?
Make a list of your connected refrigeration and building controls, ask who can reach them remotely, and review your cyber, property and spoilage coverage together, not one at a time.

Let’s Look at the Whole Picture

The lesson from France is that cyber, property and spoilage coverage can’t be reviewed in isolation. They need to work together. McGriff-Williams Insurance is an independent insurance agency serving Florida businesses from Gainesville. We can review your cyber, property and spoilage coverage side by side, help you spot possible gaps, and talk through your options in plain English. There’s no obligation.

Call (352) 371-7977 or request a quote.

McGriff-Williams Insurance
3501 W University Ave, Gainesville, FL 32607
(352) 371-7977 · Monday–Friday, 9 AM–5 PM
mcgriffwilliams.com

This article is for general educational purposes only and is not legal advice. Insurance coverage depends on the actual terms, conditions, limits and exclusions of each policy. Nothing here changes any policy or promises that any loss is or will be covered. Details of the French incident are based on public reports as of mid-October 2026 and may change as investigations continue.

Sources

Not in a Flood Zone? What Florida Homeowners Should Know About Flood Insurance

Posted on by McGriff Williams in Blog |

“Am I in a flood zone?” is often the first question Florida homeowners ask about flood insurance. It’s a good question, but the answer doesn’t tell the whole story. Here’s a plain-English look at what flood zones mean, what a typical homeowners policy leaves out, and why timing matters if you decide to buy coverage.

What a “flood zone” actually means

FEMA’s flood maps divide areas into zones. High-risk areas, called Special Flood Hazard Areas, usually show up as zones beginning with “A” or “V.” Lenders generally require flood insurance on mortgaged homes in those areas. Moderate- and low-risk areas often show up as Zone X.

You can look up your home’s zone on the FEMA Flood Map Service Center. Keep in mind that a map lookup is not an official determination, and maps change over time as areas are restudied.

The key point: “low risk” doesn’t mean “no risk.” Zone X describes a lower likelihood of flooding, not an absence of it.

Flooding happens outside high-risk zones too

Florida’s Department of Financial Services puts it simply: storm surge, heavy rainfall and low, flat terrain make Florida vulnerable to flooding, and flooding “doesn’t just affect those who live near a body of water.” DFS notes that approximately 25% of flood claims happen in low-risk areas (Florida DFS, Insurance Consumer Advocate).

Inland Florida isn’t immune either. Heavy rain can overwhelm drainage, raise lakes and creeks, and pool water in low spots far from the coast.

Your homeowners policy probably doesn’t cover flood

FEMA’s FloodSmart site says that most homeowners and renters insurance does not cover flood damage (FloodSmart: Buy a Policy). Flood coverage is usually a separate policy. Some private home insurers offer it as an endorsement, an add-on to the home policy, so it’s worth checking your declarations page or asking your agent what you have today.

Florida law doesn’t require most homeowners to carry flood insurance. The exceptions are mainly lender requirements and Citizens Property Insurance, which is phasing in a flood requirement for its policyholders. For everyone else, it’s a personal decision about how much risk you’re comfortable carrying.

What NFIP flood insurance covers (and doesn’t)

The National Flood Insurance Program (NFIP), run by FEMA, is the most common source of flood insurance. According to FloodSmart:

  • Building coverage goes up to $250,000 for a home. It includes the structure plus items like electrical and plumbing systems, furnaces, water heaters and built-in appliances.
  • Contents coverage goes up to $100,000 for belongings such as furniture, clothing and electronics. Renters can buy contents coverage too.
  • Building and contents coverage are typically bought separately and have separate deductibles.
  • NFIP policies don’t cover temporary housing or additional living expenses while your home is repaired, and they exclude items like vehicles, landscaping, decks, fences and pools (FloodSmart: Buy a Policy; FloodSmart policy terms).

Private flood policies are also available in Florida. Their limits, waiting periods and features vary by company and policy, so compare the actual policy wording.

The 30-day waiting period: why timing matters

This is the part that catches people off guard. NFIP coverage generally goes into effect 30 days after you buy it. FloodSmart lists a few exceptions, including no wait when the purchase is tied to making, increasing, extending or renewing a mortgage, and a one-day wait in certain newly mapped high-risk areas (FloodSmart: Buy a Policy).

In practice, you usually can’t buy NFIP coverage when a storm shows up in the forecast and expect it to apply to that storm. Florida’s hurricane season runs June 1 through November 30, and heavy rain can come at any time of year. If you’re considering flood insurance, it’s generally easier to look at it well before you think you’ll need it.

How NFIP premiums are figured

FloodSmart says three things drive an NFIP rate: where your property is built, how it’s built, and what it would cost to rebuild it. NFIP rates don’t vary by insurance company or agent; every company that sells NFIP policies uses the same pricing (FloodSmart: Buy a Policy). An Elevation Certificate, which documents your building’s elevation, is optional for NFIP coverage. FEMA’s rating can take one into account. Any effect on price depends on your property and documentation.

Questions to ask yourself

  • Where does water go on my street and lot during a heavy rain?
  • Could I afford to repair my floors, walls, systems and belongings out of pocket after a flood?
  • Does my current home policy include any flood coverage, or none?

Talk with us

McGriff-Williams Insurance is an independent agency in Gainesville, in business since 1983, and we write flood insurance every day. If you’d like to talk through your flood zone, what your current policy covers, or how NFIP and private flood options compare, call us at (352) 371-7977. We serve clients throughout Florida by phone, email and video.

General information, not legal or coverage advice. Coverage depends on the policy issued, its terms and underwriting. Information current as of October 2026; confirm details with your agent or insurer. McGriff-Williams Insurance is an independent insurance agency licensed in Florida and is not affiliated with FEMA or the National Flood Insurance Program.

Sources

Is Your Water Damage Coverage Only $10,000? What Owners of Older Florida Homes Should Know

Posted on by McGriff Williams in Blog, Home Insurance |

Gainesville has plenty of mid-century and 1970s and ’80s homes. If you own one, check how your policy handles water damage. Many Florida insurers now cap water damage on older homes, often at $10,000.

Why Older Homes Often Have Water Caps

Most water claims start inside the house: a failed supply line, water heater, or pipe in the wall. Plumbing wears out with age, so insurers look closely at it.

Depending on the company, homes around 40 years old and older are often written with a limited water damage endorsement. It pays for sudden leaks only up to a set amount, commonly $10,000, sometimes including tear-out to reach the leak. The age cutoff and how strict it is vary by company.

On many older homes, buying a higher limit isn’t always an option. If the original plumbing is still in place, some companies will only offer the capped coverage, whatever you’re willing to pay.

Plumbing Updates That Usually Matter

Updates can open up more choices. Insurers generally look at:

  • A full re-pipe. Replacing older supply lines, especially galvanized or polybutylene pipe, is often the biggest single factor.
  • A newer water heater. Age and location both get looked at.
  • Updated supply lines to sinks, toilets, and appliances.

Results aren’t guaranteed. Some companies may remove the cap or offer higher limits after major plumbing work, and others may not. Documenting the work gives you the best chance.

Keep Your Paperwork

Insurers usually want proof. Keep:

  • A 4-point inspection. Many older Florida homes need one. It reviews the roof, electrical, plumbing, and HVAC.
  • Plumber invoices showing what was replaced and when.
  • Permits, where the work required one.

Updated your plumbing but still see a $10,000 limit? It may be worth a fresh review.

Newer Homes: Usually No Water Limit, Unless You Choose One

On newer homes, there’s typically no separate water damage limit. Covered water damage is insured up to your full dwelling limit (Coverage A). A cap usually only shows up if you choose one. Some companies offer a lower water limit, such as $10,000, in exchange for a premium credit. That can be a reasonable way to save, but understand the trade-off first. One bad leak can cost more than years of savings.

The 14-Day Hidden Leak Rule

Many Florida policies also exclude damage from water that leaked or seeped over a long period, often 14 days or more. A slow leak behind a wall is treated as maintenance, not a sudden accident. Wording varies. Check under sinks and around the water heater now and then.

Florida law gives you one year from the date of loss to give your insurer notice of a new claim (s. 627.70132, F.S.). Still, report water damage promptly.

Preventing Water Damage With a Leak Detection Device

A leak detection device can stop a small problem from becoming a big claim. There are two main types:

  1. Alarm or sensor-only units. Small sensors near the water heater, washer, or sinks sound an alarm or send an alert to your phone when they detect water. Someone still has to act.
  2. Automatic whole-home shut-off valves. Installed on your main water line, these shut off the water when they detect a leak or unusual flow.

A shut-off valve is the stronger protection, because it stops the water even when nobody’s home. That matters when you’re traveling or own a second home. Systems range from simple DIY sensors to professionally installed valves.

Some companies offer premium credits for these devices, sometimes with a larger credit for automatic shut-off. Requirements, such as professional installation, vary. On an older home, a shut-off valve can help show lower risk. It won’t necessarily remove a water cap.

Water Damage, Water Backup, and Flood Are Different

  1. Water damage means sudden leaks from plumbing, appliances, or AC. This is what may be capped on older homes, or by choice on newer ones.
  2. Water backup and sump overflow means water coming up through drains or sewer lines. It’s usually excluded unless you add an endorsement, often with a $5,000 default limit.
  3. Flood means rising surface water. It needs a separate NFIP or private flood policy. Florida law requires a flood warning on declarations pages for policies that exclude it (s. 627.7011, F.S.), and Citizens is phasing in a flood requirement (Florida CFO).

How to Check Your Declarations Page

On the summary page at the front of your policy, look for:

  • An endorsement with “limited water,” “water damage,” or “tear-out” in the title, and its dollar amount
  • A “water backup” or “sump overflow” line and its limit
  • Your all other perils (AOP) deductible, which usually applies to water claims

The Florida Department of Financial Services’ Homeowners’ Insurance Toolkit includes a sample declarations page.

Frequently Asked Questions

Can I just pay more to raise my water limit?
It depends on the company and your home’s plumbing. On many older homes with original plumbing, higher limits may not be available until major updates are made.

Does my homeowners policy cover flooding?
No. Flood needs a separate policy, and water backup usually needs its own endorsement.

Can a leak detection device lower my premium?
Some companies offer credits, especially for automatic shut-off valves. Ask when you review your policy.

Let’s Look at Your Policy Together

At McGriff-Williams Insurance, we’ve helped Gainesville-area families with their coverage since 1983. As an independent agency, we can compare your current policy side by side with options from multiple carriers. Each company handles older homes and plumbing updates in its own way, so the options can differ more than you’d expect.

Call us at (352) 371-7977 or stop by 3501 W University Ave, Gainesville. Bring your declarations page, plumbing invoices or inspection reports, and details on any leak detection device, and we’ll go through them with you.

Sources

This article is general information, not a statement of coverage. Your policy’s terms, conditions, and endorsements control. Coverage options vary by company and are subject to underwriting.

Builders Risk Insurance: What It Covers and What It Doesn’t

Posted on by McGriff Williams in Blog |

Construction blueprints and rolled plans on a job site

Builders risk is one of the most misunderstood policies in the construction process. Many homeowners assume it’s a comprehensive policy that covers everything during a build. It isn’t. Builders risk is property insurance only, which does not include any liability. Knowing that distinction before you break ground could save you from serious financial challenges.

What exactly does Builders Risk cover?

Builders risk — also called course of construction insurance — protects the physical structure, materials on-site, and in some cases materials in transit, from the start of construction through completion or certificate of occupancy. Common covered perils include:

  • Fire, lightning, wind, and hail
  • Theft of building materials and vandalism
  • Explosion and sudden water damage
  • Soft costs (architect fees, loan interest, permit costs) when specifically added

Policies are typically written for 3, 6, 12 or 18-month terms. Premiums in Florida are generally fully earned at inception, no refund if the project finishes early. Extensions are available if the build runs long, but must be requested before the policy expires.

What does Builders Risk NOT cover?

  • Liability: No coverage for bodily injury or property damage claims against you as the property owner.
  • Faulty workmanship or defective materials: Damage from poor construction practices or substandard materials is excluded.
  • Worker theft: Theft by employees or workers on the job is generally not covered.
  • Flood: Requires a separate policy and is not automatically included.

An alternative option: Homeowners policy with under-construction endorsement

Some homeowners skip the standalone builders risk policy and instead purchase a homeowners policy with an under-construction endorsement. This extends property coverage to the structure during construction and — most importantly — can include the liability section of the homeowners policy. That makes it a potentially stronger option for homeowners who own the lot in their name. Confirm with your agent that liability is active and review coverage limits carefully.

Listen Up: If the land is in your name, you have a liability exposure!

Most homebuilders own the lot. That means you have a personal liability exposure that exists whether you have a builders risk policy or not. Consider this:

  • A delivery driver trips over construction debris on your lot.
  • A retaining wall fails during a rain event and damages a neighboring property.
  • Someone trespasses onto the site after hours and is injured.

In each case, a builders risk policy does nothing. You need a liability policy in place. Options include what we discussed above: a homeowners policy with an under-construction endorsement (which can include liability), a standalone vacant land or dwelling under construction liability endorsement, or confirming that a personal umbrella policy has qualifying underlying coverage. Your general contractor’s liability policy protects them — not you.

Talk to your agent before you break ground!

Whether you are the homeowner, builder, or real estate professional – make sure every phase of your project is properly covered. You could need a standalone builders risk policy, a homeowners under-construction endorsement, or guidance on closing a liability gap… either way, we can walk you through your options.