Builders Risk Coverage Gaps: What Your South Florida Luxury Development Policy Won't Cover

You have a $450 million mixed-use tower under construction in Brickell. You have a builders risk policy. You feel protected. Then a subcontractor's negligence causes $8 million in damage to the marble cladding that's already been installed. You file a claim. Your carrier denies it. The policy, it turns out, has a "care of materials" exclusion that limits your coverage once materials leave the supplier's warehouse.

This is not a worst-case scenario. It's a Tuesday in the life of a luxury developer who didn't understand what their policy actually excludes.