Deborah Hoffman

As hurricane season ramps up, many Florida homeowners are asking the same question: “Am I covered if water gets into my home?” The answer depends entirely on where the water came from. Unfortunately, this is one of the most misunderstood areas of homeowners insurance—and one of the most common reasons claims are denied. Water Backup and Flood Insurance Are Not the Same? Although both involve water damage, they protect against completely different events. Water Backup Coverage Water backup coverage protects you if water or sewage backs up into your home through: Sewers Drains Toilets Sump pumps (if covered) For example, during a heavy rainstorm, the municipal sewer system becomes overwhelmed and water backs up through a floor drain, damaging your flooring and personal belongings. Without a water backup endorsement on your homeowners policy, this type of loss is often not covered. Flood Insurance Flood insurance protects your home when water enters from outside the property. Examples include: Heavy rainfall causing water to flow across the ground and into your home Storm surge from a hurricane Overflowing canals, lakes, rivers, or retention ponds Here’s the key distinction: If the water touches the ground before entering your home, it’s generally considered a flood. Standard homeowners insurance does not cover flood damage. Why This Matters More Than Ever Every hurricane season reminds us that you don’t have to live on the beach or in a designated flood zone to experience flooding. In fact, thousands of flood claims each year come from properties located outside of high-risk flood zones. Just a few inches of water inside a home can result in tens of thousands of dollars in damage to flooring, drywall, cabinetry, furniture, and personal belongings. Don’t Wait Until a Storm Is Named One of the biggest misconceptions is that flood insurance can be purchased at the last minute. Most flood policies have a waiting period before coverage becomes effective. Once a storm is approaching, it may be too late to secure protection for that event. The best time to review your coverage is before you need it. A Simple Coverage Check Can Make All the Difference Ask yourself these questions: Do I have a Water Backup endorsement on my homeowners policy? Do I have flood insurance? Are my flood limits adequate to rebuild my home and replace my belongings? Have I reviewed my coverage within the past year? If you’re unsure of any of these answers, now is the perfect time for a coverage review. We’re Here to Help At SWFL Insurance, we help homeowners understand exactly what is—and isn’t—covered before hurricane season arrives. We’ll review your current homeowners policy, determine whether you have water backup protection, evaluate your flood exposure, and help you find the right solution for your home and budget. A few minutes spent reviewing your coverage today could save you from a devastating financial loss tomorrow. Don’t assume you’re covered. Know you’re covered. Contact SWFL Insurance today for a complimentary coverage review before the next storm is on the horizon.

Short answer: Yes, in most construction projects you need both. A Builders Risk policy and a General Liability (GL) policy protect against completely different types of losses. While a Builders Risk policy may include some limited liability protection, it does not replace a General Liability policy. Think of it this way: Builders Risk protects the project. General Liability protects your business. Most contractors, developers, investors, and property owners need both coverages to avoid potentially devastating gaps. Side-by-Side Coverage Comparison Coverage Builders Risk General Liability Damage to the building under construction Yes No Fire Yes No Windstorm/Hail (subject to policy) Yes No Theft of building materials Yes No Vandalism Yes No Construction materials on site Yes No Temporary structures/scaffolding Often No Tools & Equipment Sometimes (endorsement) No Visitor slips and falls Usually No Yes Damage to neighboring property No Yes Contractor accidentally causes injury No Yes Legal defense costs No Yes Products & Completed Operations No Yes Personal & Advertising Injury No Yes Medical Payments No Yes What Does Builders Risk Cover? Builders Risk is property insurance specifically designed for buildings during construction or renovation. Typical covered losses include: Fire Lightning Wind Hail Theft of materials Vandalism Water damage from covered causes Collapse from covered perils Materials in transit (if included) Materials stored off-site (if endorsed) Its purpose is to pay to repair or rebuild the project itself. What Doesn’t Builders Risk Cover? This is where many people misunderstand the policy. Builders Risk generally does not cover: Injuries to third parties Someone slipping and falling at the jobsite Damage caused to neighboring buildings Claims of negligence Advertising injury Completed operations Contractual liability Employee injuries (Workers’ Compensation responds) Professional design errors What Does General Liability Cover? General Liability protects your business when someone alleges you caused bodily injury or property damage. Examples include: A visitor falls on the jobsite. GL pays. A contractor damages the neighbor’s fence. GL pays. Dust damages the neighboring property. GL pays. Your completed work causes damage months later. GL may respond through Products & Completed Operations coverage. You are sued. GL pays defense costs, even if the lawsuit has no merit. Doesn’t Builders Risk Already Include Liability? Some Builders Risk policies include very limited premises liability or optional endorsements. This is not the same as a Commercial General Liability policy. Those limited coverages typically: Have much lower limits Cover only very specific situations Exclude many contractor operations Do not include Completed Operations Do not include broad legal defense Do not satisfy many contract requirements Think of it as a convenience feature—not a replacement for General Liability. Real-World Example A developer is renovating a $750,000 home. During construction: A fire destroys half the structure. Builders Risk pays to rebuild the damaged portion. The next day, a delivery driver trips over construction debris and suffers a broken leg. General Liability responds to the injury claim and legal defense. Two months later, heavy equipment accidentally knocks over the neighbor’s retaining wall. General Liability responds to the property damage claim. Without both policies, each of these losses could become an out-of-pocket expense. Who Needs Both? In most cases: General Contractors Home Builders Developers House Flippers Investors Property Owners Commercial Remodelers Custom Home Builders Anyone constructing or substantially renovating a building should carry both Builders Risk and General Liability coverage. Frequently Asked Questions Can I buy Builders Risk without General Liability? Yes. But it leaves you exposed to lawsuits and third-party claims. Can I buy General Liability without Builders Risk? Yes. But your building under construction is not protected from property damage. Does Builders Risk cover injuries? Generally, no. Does General Liability cover the building? No. Do lenders require Builders Risk? Almost always. Do contracts require General Liability? Almost always. The Bottom Line Builders Risk and General Liability are designed to work together—not replace one another. If you’re building, renovating, or flipping a property, Builders Risk protects your investment in the structure, while General Liability protects your business from lawsuits and third-party claims. Having both ensures you’re protected from the most common risks that arise during construction.