Renovating a home in Florida involves more than choosing finishes and hiring a contractor. Insurance plays a major role in protecting you, your property, and the workers on your job site. Understanding what coverage is required — and what gaps exist — helps you avoid financial exposure during your project. If you are planning a renovation through a licensed general contractor, here is what you need to know about insurance.
Contractor Liability Insurance
Every licensed contractor in Florida should carry general liability insurance. This covers damage to your property caused by the contractor’s work — for example, if a plumber accidentally floods your living room during a bathroom renovation. Ask to see a current Certificate of Insurance and confirm the policy is active by calling the insurance company. Do not accept an expired certificate or a verbal assurance that coverage exists.
A standard general liability policy for a Florida contractor typically provides $1 million per occurrence and $2 million aggregate coverage. If your project is large — say, a whole-home renovation exceeding $200,000 — ask whether the coverage limits are sufficient for your scope of work.
Workers’ Compensation Insurance
Florida law requires contractors with one or more employees to carry workers’ compensation insurance. This covers medical costs and lost wages if a worker is injured on your property. If a contractor does not have workers’ comp and a laborer gets hurt during your renovation, you could be held financially responsible under your homeowner’s policy — or worse, face a personal liability claim.
Even if a contractor claims to work solo, verify this. Subcontractors who are not properly covered create the same liability risk. A responsible general contractor ensures that every sub on the job carries their own workers’ comp or is covered under the general contractor’s policy.
Builder’s Risk Insurance
Builder’s risk insurance covers damage to the structure and materials during construction. This is especially relevant in Florida, where hurricane season runs from June through November. If a storm damages your partially renovated home, your standard homeowner’s policy may not cover the construction work in progress.
For smaller renovations, your existing homeowner’s policy may be sufficient — but call your insurance company before work begins to confirm. For larger projects, especially additions or whole-home renovations, a separate builder’s risk policy is recommended. Your contractor may carry this, or you may need to purchase it yourself.
Your Homeowner’s Insurance During a Renovation
Notify your homeowner’s insurance company before any renovation begins. Many policies have clauses that reduce or void coverage if the home is under construction, unoccupied during renovation, or if certain types of work are performed without notice. Key things to discuss with your insurer:
- The scope of work and expected timeline
- Whether your current policy covers construction-related damage
- Whether you need additional coverage or a rider during the renovation
- How occupancy status affects your coverage (important if you move out during the project)
Permit and Insurance Connection
In Florida, pulling a building permit creates a public record that construction is happening. Insurance companies can and do check permit records. If you do unpermitted work and later file a claim, your insurer may deny the claim based on undisclosed renovations. Always permit the work, always notify your insurance company, and always work with a contractor who pulls permits under their own license.
What to Verify Before Your Renovation Starts
- Contractor has active general liability insurance — request the Certificate of Insurance
- Contractor has workers’ compensation coverage for all employees and subcontractors
- Your homeowner’s policy covers the renovation scope — call your insurer to confirm
- Builder’s risk insurance is in place for large projects or projects during hurricane season
- All required permits are pulled before work begins
Getting the insurance details right before your renovation starts protects your home and your finances. Alliance Construction is a fully insured, licensed general contractor (CBC1268590) serving Fort Myers and Southwest Florida. View our services or call (239) 244-4341 to discuss your project.
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Alliance Construction provides remodeling services in Cape Coral, Naples, Bonita Springs, Estero, North Fort Myers, and Punta Gorda. View all services →