A new home build in Southwest Florida can feel like a well-run kitchen. Materials arrive, crews rotate in, and progress stacks up day by day. Then one surprise storm, theft incident, or fire can wipe out weeks of work.

That's where builder risk insurance fits. It's designed for the structure while it's being built, plus many of the materials tied to that build.

In 2026, pricing in Florida still swings widely because wind exposure, rebuild costs, and jobsite losses vary by neighborhood. Below is a practical guide to what builder's risk covers, what it often doesn't, and what real premium ranges look like for new construction in SWFL.

Builder's risk is a type of property coverage for a project in progress. In plain terms, it helps pay to repair or replace covered work after a covered loss, before you receive a standard homeowners policy.

Most Florida builder's risk policies center on these areas:

• The structure under construction : The framing, block, roof system, rough-ins, and installed finishes as the home takes shape.
• Materials on site : Items stored at the jobsite, like windows, doors, cabinets, and tile (limits and conditions apply).
• Temporary structures : Sometimes included, like a job trailer or temporary fencing (often by endorsement).
• Theft and vandalism : Common in active build corridors, but it's not always automatic. Some carriers set tighter rules for security.

Just as important is what commonly falls outside the default policy. Florida builders and owners get tripped up here:

• Flood damage : Many builder's risk policies exclude flood, even in flood-prone counties. Flood coverage may require a separate policy or endorsement.
• Named storm or wind exclusions : Some policies restrict wind coverage, or add a separate hurricane deductible.
• Faulty workmanship or design : If a trade installs something wrong, builder's risk usually won't pay to fix the bad work itself. It may pay for resulting damage, depending on the form.
• Tools and contractor equipment : Typically covered under inland marine or contractor's equipment coverage, not builder's risk.
• Soft costs and delays : Permit re-submittals, interest carry, and some re-design costs often need a "soft costs" endorsement.

Because Florida building rules and lender requirements vary, it helps to align insurance early with your build plan and contract style. If you're still mapping the process, start with this Ultimate Guide to Building Your Dream Home in Southwest Florida.

In 2026, builder's risk pricing in Florida often lands in a broad band of about 1% to 5% of the completed value for the policy term, depending on wind exposure and underwriting appetite. That's not a quote, it's a planning range.

Many policies are written for 6 to 12 months, then extended if the build runs long. Extensions can cost more than you expect, especially through hurricane season.

Here's a realistic planning table for SWFL new construction:

Takeaway: the deductible often matters as much as the premium, especially for wind claims. A 5% hurricane deductible on a $700,000 limit can mean a large out-of-pocket share before insurance pays.

Several job details drive cost fast in Southwest Florida:

Location and wind exposure. Coastal and near-coastal zones often price higher than inland areas because wind losses cluster there.

Construction type and theft risk. Wood-frame projects can price differently than concrete block. High-theft areas, long periods without doors, and expensive stored finishes can raise rates.

Project timeline. A 14-month custom build usually costs more to insure than a 7-month build. More time equals more chances for a loss.

Limit accuracy. Underinsuring to "save premium" can backfire. If your policy has a coinsurance clause, a partial loss might not pay as expected.

Optional coverages. Debris removal, pollutant cleanup, ordinance and law, and soft costs can add premium, but they also reduce ugly surprises.

Scenario A: Inland single-family new build (Lehigh Acres style).
Completed value around $550,000, concrete block, average finishes, 9 to 10 months. A planning range might be $2,000 to $7,500 for the term, with a hurricane deductible often 2% to 5% .

Scenario B: Coastal custom home (near the Gulf, higher wind exposure).
Completed value around $1,100,000, upgraded glazing, high-end interior packages stored on site, 12 to 14 months. A planning range might be $6,000 to $18,000+ , with tighter wind terms and stronger security requirements.

Scenario C: Small commercial build (office or small retail shell).
Completed value around $900,000, more liability coordination, different trades, 8 to 12 months. A planning range might be $4,500 to $14,000 , depending on occupancy type, protection class, and wind treatment.

These ranges shift with market capacity. After active storm seasons, some carriers tighten terms even when your project looks clean.

First, confirm who is responsible for the policy. Sometimes the owner buys it. Other times the GC does, then bills it back. Either way, the policy should match the contract language, including who is listed as insured, additional insured, and loss payee (often a lender).

If you're comparing build styles, contract structure affects insurance planning. A cost-plus home builder model can make the insured value easier to track because costs are itemized as they occur. When the build runs on transparent pricing , it's simpler to justify limits, document change orders, and avoid gaps between "budget" and "actual."

For a helpful comparison, see Custom home vs spec home in Southwest Florida. Custom builds usually mean longer timelines and more stored materials, so insurance needs tend to be more detailed.

Before binding coverage, ask your agent to walk through these items in plain language:

• Wind and named storm coverage : Confirm it's included, and confirm the hurricane deductible.
• Flood treatment : Confirm whether flood is excluded, endorsed, or separate.
• Theft and vandalism limits : Ask about security requirements (fencing, cameras, lock-up rules).
• Materials in transit and off-site storage : Useful when windows, trusses, or cabinetry are stored elsewhere.
• Debris removal : Often overlooked after storm damage.
• Soft costs or delay coverage : Consider it if you have a tight move-in date or a construction loan clock.
• Testing and faulty work language : Know what "resulting damage" means in your form.

Ask these before you sign anything:

1. What value basis are we insuring, completed value or hard costs to date?
2. Is wind covered during framing and drying-in, or only after the roof is on?
3. What triggers the hurricane deductible, named storm, windstorm, or both?
4. Are there any protective safeguards I must follow, or the claim can be denied?
5. How do extensions work if permitting or materials delay the schedule?
6. When does builder's risk end, CO, occupancy, or closing?

Wind details also connect to long-term homeowners insurance. After you move in, a wind mitigation inspection can affect pricing and credits. Here's a local explainer on wind mitigation inspection in Cape Coral.

Builder's risk insurance is the seatbelt for your build budget. In Southwest Florida, the 2026 cost depends on wind exposure, timeline, theft controls, and how you set limits and deductibles. Start early, confirm wind and flood treatment, and keep your insured value aligned with real costs.

This article is for general education only, not insurance or legal advice. Talk with a licensed Florida insurance agent (and your lender) to match coverage to your project and contract.