Construction insurance for Miami and South Florida development projects carries unique exposures that contractors and developers in other markets don’t face. Hurricane season runs six months, flood zones cover much of the buildable land, and material costs have spiked due to post-storm demand. Builders risk policies in Miami must account for named-storm deductibles, and lenders increasingly require broader coverage than the minimum.
For developers financing projects through SBA 504 loans, additional hazard insurance requirements apply on top of the standard construction program. See our guide to SBA hazard insurance for the specific coverage triggers.
Key Takeaways
- Named-storm deductibles: Miami builders risk policies carry 2–5% named-storm deductibles — on a $20M project, that’s $400K–$1M out of pocket
- Flood insurance: Required for most South Florida construction sites in FEMA flood zones
- Wind mitigation: Florida Building Code compliance can reduce windstorm premiums
- Soft costs / DSU: Delay in startup coverage protects against revenue loss from hurricane-caused construction delays
- SBA loans: Require hazard insurance with specific property coverage beyond builders risk
Frequently Asked Questions
Does builders risk cover hurricane damage in Miami?
Yes, but with a named-storm deductible — typically 2–5% of the insured value. This means on a $20M project, the deductible for hurricane damage is $400K–$1M. Some carriers offer buydown options to reduce the deductible for an additional premium.
Disclaimer: This article is for informational purposes only and does not constitute insurance, legal, or financial advice. Coverage requirements vary by state and operation. Consult our licensed advisors for guidance specific to your business.
Miami Construction Insurance
Hotaling’s Miami office structures builders risk, GL, and umbrella programs for South Florida developers and contractors.
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