What is an agricultural enclave under Florida's SB 686?

Under SB 686 (2026, Chapter 2026-34, effective July 1, 2026), land in continuous agricultural use for at least five years and mostly surrounded by existing development can be certified as an enclave on a 30/30/90-day clock. Once certified, single-family development at the neighbors' density is a conforming use regardless of the county's comprehensive plan or zoning. The provisions expire January 1, 2028.

Who buys builders risk on a Florida construction project — the owner, the GC, or the sub?

It varies by contract: often the builder on custom homes, the developer on master-planned communities, and the program itself on wrap-up projects. The contract's insurance exhibit assigns it — never assume.

Does a Florida workers comp officer exemption satisfy a general contractor's insurance requirements?

No. An exemption relieves you of buying workers comp for yourself; it does not relieve the GC of verifying coverage down the chain. Construction exemptions are also capped at three officers or LLC members per company, each with at least 10% ownership, and no exemption exists for construction sole proprietors or partners.

St. Johns County Just Certified 1,165 Acres for Homes: The SR 207 Corridor Contractor's Insurance Guide (2026)

By Ricardo Alonso, Founder, Atesa Risk Advisors · September 1, 2026

Key Takeaways

The day after the August 18 primary, St. Johns County certified two "agricultural enclaves" — Heritage East and Heritage West, roughly 615 and 550 acres near Interstate 95 and State Road 207 — in back-to-back 3–2 votes, Jacksonville Today reported. [1][2]
Reported densities could allow nearly 15,000 homes across the two tracts. On September 1 the commission deadlocked on the largest application yet — the Davis family's 4,462-acre tract north of Nocatee — leaving it pending under the law's 90-day clock. [1][2][6]
Six enclave applications covering 6,558 acres of farm and timber land were on file by late July, and the count reached eight by early August. [3][4]
Certification is the starting gun, and the law itself expires January 1, 2028 — which is why applications are arriving all at once. Clearing, roads, and vertical construction mean years of bids, each with insurance requirements stapled to it. [8]
The core stack: general liability with completed operations, builders risk written for hurricane season, workers compensation, commercial auto, and inland marine equipment coverage.
Schedule risk is real: slow-growth candidates swept the August primary, and on September 1 the commission voted 3–2 to retain outside counsel and seek an injunction against the law. Policy terms need room for delays. [5][6][7]

What insurance do you need to work construction in St. Johns County's SR 207 corridor? For most contractors and subcontractors, five coverages: general liability with completed operations, builders risk on each structure, workers compensation (or a documented exemption), commercial auto, and inland marine coverage for tools and machines. On large master-planned phases, the developer may supply part of that through a wrap-up program. The build-out that follows August's agricultural-enclave votes will be bid and built over years — and the contractors who show up with clean, complete coverage win the work.

What just happened along SR 207

For seventy years, the land around the I-95 and SR 207 interchange in southwest St. Johns County grew pine trees. That changed in August. As Jacksonville Today and News4Jax reported, the county commission certified two "agricultural enclave" applications — Heritage East and Heritage West, filed by Heritage Development of Northeast Florida and connected to homebuilder MasterCraft Builder Group according to Jacksonville Today, at roughly 615 and 550 acres — in back-to-back 3–2 votes the day after the August 18 primary. [1][2]

The certifications flow from Senate Bill 686 — Chapter 2026-34, signed in April and effective July 1, 2026 — which rewrote Florida's agricultural-enclave statute. Land in continuous bona fide agricultural use for at least five years (measured as of January 1, 2025), mostly surrounded by existing development and generally up to 1,280 acres, can be certified as an enclave on a fixed clock: the county must issue a report within 30 days, hold a hearing within 30 more, and if it neither approves nor denies within 90 days of the application, the land is certified automatically. Once certified, single-family development at the density of the neighboring parcels must be treated as a conforming use regardless of the county's comprehensive plan or zoning — no plan amendment required — and commercial or industrial uses are allowed only where the enclave adjoins an interstate, which these tracts do. The provisions expire January 1, 2028, which is why the applications are arriving all at once. [8][10]

The Heritage tracts are not the whole story. Jacksonville Today counted six applications covering 6,558 acres by late July, and the Jacksonville Daily Record logged the eighth by early August — including a 51-acre filing tied to the Entrada development. [3][4][9] The largest of all, the Davis family's 4,462 acres between the Duval County line and the Intracoastal north of Nocatee, came before the commission at its regular September 1 meeting and went nowhere: a motion to deny failed 3–2, a motion to approve failed 2–3, and the application sits pending with the statute's 90-day clock running. The same meeting produced a 3–2 vote to hire outside counsel and seek an injunction against SB 686 itself — no suit had been filed as this was written. [6]

Reported densities on the certified tracts run as high as 13 homes per acre — nearly 15,000 potential homes on either side of the highway, by Jacksonville Today's math. [1] Certification is not a rezoning or a building permit — 13 per acre is a ceiling set by the neighboring land use, not a plan — but whatever the final number, an enormous amount of construction work is coming to a corridor that has mostly known potato fields and planted pine.

An enclave certification is a legal shortcut — and a schedule wildcard

Two features of this story should shape how you buy insurance.

First, the speed. Enclave certification compresses a years-long entitlement fight into something much faster. Clearing, drainage, and road work tend to follow quickly — site contractors, utility crews, and earthwork subs will see bid invitations before the vertical trades do.

Second, the friction. Slow-growth candidates won big in the August 18 primary — Jacksonville Today reported the winners campaigned on a voting bloc to restrain development — and after an August 4 vote to study a court challenge, the commission voted 3–2 on September 1 to retain outside counsel and seek an injunction against the law. [5][6][7] Projects here could stall, restart, and stall again. For a contractor that is a policy problem: builders risk is written for a construction term, and a project that sits half-built while lawyers argue needs extensions and a carrier willing to stay on. Ask about extension terms before you bind, not when the clock runs out.

The five coverages corridor work actually needs

Coverage	What it pays for	Who will demand it
General liability with completed operations	Injury or property damage from your work — including work you finished years ago	Every GC, on the certificate, with additional-insured status
Builders risk	The structure, installed systems, and stored materials while under construction	Whoever the contract's insurance exhibit assigns — builder, developer, or the wrap program
Workers compensation	Employee injuries; construction exemptions are capped at three qualifying officers	GCs verify coverage or exemption certificates down the whole sub chain
Commercial auto	Trucks and trailers used for business, which personal auto policies exclude	GCs and site owners; lenders on financed vehicles
Inland marine	Tools and machines wherever they travel — yard, trailer, site	Equipment lenders and rental agreements; GCs on larger jobs

General liability — and the part that outlives the job

Commercial general liability (GL) pays when your work injures someone or damages someone else's property. For residential contractors, the half that matters most is completed operations — the extension of that protection to work you have finished and handed over. Florida gives owners four years to bring a defect claim, with an absolute outer deadline — the statute of repose — of seven years, both running from the earliest of the temporary or final certificate of occupancy, the certificate of completion, or abandonment of the job. The Legislature cut that repose from ten years to seven in 2023, but seven years of exposure is still seven years. [11] Either way, completed-operations coverage has to stay in force long after the certificate of occupancy, and carriers underwrite residential work — especially the building envelope — harder than almost any other class.

Builders risk, written for the middle of hurricane season

Builders risk is property insurance on a structure while it is being built — the framing, the installed systems, and often materials stored on site or in transit. Two things matter on this corridor. One: it is the heart of Atlantic hurricane season, and builders risk carries named-storm deductibles and, sometimes, restrictions on binding coverage while a storm is on the map — do not wait for a forecast cone to call your agent. Two: theft. Newly cleared sites with staged appliances and copper are where jobsite theft happens, so know your stored-materials limit and the security the policy expects.

Workers compensation — the exemption is not a free pass

Florida treats construction as a high-hazard industry for workers compensation, and the exemption rules are narrower than most owners assume: a construction business can exempt at most three officers or LLC members, each must own at least 10% of the company and be listed with the Division of Corporations, and sole proprietors, partners, and independent contractors in construction are deemed employees with no exemption available at all. [12] An officer exemption relieves you of buying coverage for yourself — it does not satisfy a GC who must verify coverage down the subcontractor chain. Expect proof of workers comp or a valid exemption certificate to be demanded before you set foot on site. Our Florida workers' comp guide for employers covers how the rates and rules work.

Commercial auto and your equipment

Personal auto policies routinely exclude business use, and a truck hauling a skid steer to a jobsite is business use — you need commercial auto rated for how you actually drive. The machines themselves ride on an inland marine policy (the insurance term for property that moves), which follows equipment from yard to trailer to site. On a corridor this size, equipment theft and borrowed-equipment damage are the two claims to plan around.

The paperwork that wins bids: COIs and additional insured status

Every GC will ask for a certificate of insurance (COI) — the one-page proof of your coverage — and most will require additional insured status, which extends your liability policy to protect the GC for claims arising out of your work. Sloppy certificates lose bids; a broker who turns COIs around same-day, endorsements attached, is part of your competitive edge.

Bidding on a master-planned phase? Expect a wrap-up

Developments at this scale are often insured under a wrap-up — an OCIP (owner-controlled insurance program) or CCIP (contractor-controlled), where the owner or GC buys GL and sometimes workers comp for everyone enrolled. Enrollment changes your bid math: you credit back premium you are not paying, but you still need your own coverage for off-site work, your yard, your autos, and everything the wrap excludes. Before pricing a wrap job, read our Florida subcontractor's guide to OCIP and CCIP wrap-ups.

"I spent years on Florida jobsites before I ever wrote a policy, and the pattern on a corridor like this never changes: the site-work and utility subs get the first calls, they bid with whatever certificates they have on hand, and the ones with a clean, complete file win. The paperwork isn't overhead. On a build-out this size, it's the bid."

— Ricardo Alonso, Founder, Atesa Risk Advisors

What to line up before you bid

Get your license and exemption records current, then have your broker build a bid-ready file: GL with completed operations at the limits corridor GCs demand, builders risk you can bind quickly per-structure, workers comp documentation, commercial auto, and an inland marine schedule that matches your trailer. Assembling the stack from scratch? Our Florida contractor insurance bundle guide walks through each line.

If you live near the corridor instead of building in it

Homeowners in Hastings, Elkton, and along SR 207 will feel this too — construction traffic first, then rooftops, and eventually the roads, fire stations, and hydrants that follow them. If you are shopping coverage in the county, start with our St. Johns County homeowners insurance guide.

How Atesa Risk Advisors Can Help

Atesa Risk Advisors is an independent, RamseyTrusted brokerage — we work for you, not a carrier, and we shop more than 40 A-rated markets, including the surplus-lines carriers that write Florida residential construction when standard markets will not. I spent years in construction before insurance, so a framing sub will not have to explain the difference from a finish carpenter.

Planning to bid corridor work? Get a quote, call (904) 900-5063, or start from our St. Augustine page — we will build the bid-ready file with you.

FAQ: Contractor insurance in St. Johns County

What insurance does a contractor need to work in St. Johns County? General liability with completed operations, workers compensation or a documented exemption, commercial auto, and inland marine coverage for equipment. Anyone building structures also needs builders risk per project, and GCs layer certificate and additional-insured requirements on top.

What is an agricultural enclave, in plain English? Under SB 686 (2026), land in continuous agricultural use for at least five years and mostly surrounded by existing development can be certified as an enclave on a 30/30/90-day clock — and once certified, single-family development at the neighbors' density is a conforming use regardless of the county's comprehensive plan or zoning. The provisions expire January 1, 2028. That is how more than 1,100 acres near I-95 and SR 207 were certified in one day.

Who buys builders risk — the owner, the GC, or the sub? It varies by contract: often the builder on custom homes, the developer on master-planned communities, the program itself on wrap-up projects. Never assume — the contract's insurance exhibit says who carries it.

Will the SR 207 projects use an OCIP or CCIP wrap-up? Unknown at this stage, but master-planned communities of this reported size frequently do. If your bid package includes wrap-up enrollment forms, price the job with the wrap credit and confirm what your own policies must still cover.

How does hurricane season affect builders risk? Named-storm deductibles run higher, and many carriers restrict binding new coverage once a storm enters the forecast area. Bind before you mobilize and document site conditions ahead of any storm.

Does my officer exemption satisfy a GC's insurance requirements? No. An exemption relieves you of buying workers comp for yourself; it does not relieve the GC of verifying coverage down the chain. Bring the certificate and expect the GC to keep a copy on file. Remember the limits, too: no more than three exempt officers per company, each with at least 10% ownership — and no exemption exists for construction sole proprietors or partners. [12]

How long after finishing a job can I be sued for a defect in Florida? Four years from the earliest of the temporary or final certificate of occupancy, the certificate of completion, or abandonment of the job, with an absolute seven-year statute of repose from the same trigger — cut from ten years in 2023. Seven years is long enough that completed-operations coverage should never lapse the day a job ends. [11]

Sources

[1] Jacksonville Today — 1,000-plus acres of agricultural land OK'd for development in St. Johns (Aug. 19, 2026) [2] News4Jax — Split decision: St. Johns County certifies two agricultural enclaves, delays third vote (Aug. 19, 2026) [3] Jacksonville Today — 6,500-plus acres in St. Johns County could be developed under new state law (July 23, 2026) [4] Jacksonville Daily Record — Eighth Agricultural Enclave application filed in St. Johns County (Aug. 6, 2026) [5] Jacksonville Today — Slow-the-growth candidates win big in St. Johns County (Aug. 24, 2026) [6] Jacksonville Daily Record — St. Johns County deadlocks on Davis enclave application, votes to challenge state law (Sept. 1, 2026) [7] Jacksonville Today — St. Johns County considers challenge to agricultural development law (Aug. 4, 2026) [8] Florida Senate — CS/CS/CS/SB 686 (2026), Chapter 2026-34, Agricultural Enclaves (bill page, history, and enrolled text) [9] Jacksonville Daily Record — Entrada developers seeking Agricultural Enclave certification for 51 acres (Aug. 13, 2026) [10] Florida Statutes § 163.3162 — Agricultural lands and practices; agricultural enclave certification (Online Sunshine) [11] Florida Statutes § 95.11(3)(b) — Limitations and statute of repose for actions founded on the design, planning, or construction of an improvement to real property (Online Sunshine) [12] Florida Statutes § 440.02(18) — Workers' compensation; construction-industry officer exemptions (Online Sunshine)

Ricardo Alonso is the Founder of Atesa Risk Advisors, a Florida independent insurance agency based in Jacksonville. Licensed 2-20 General Lines Agent and 2-15 Health & Life Agent, with a Master of Liberal Arts in Finance from Harvard University. His construction-industry background informs how he places coverage for business owners and contractors across Northeast Florida.

Educational disclaimer: This article is general educational information about insurance and is not insurance advice, a quote, or an offer of coverage. Rates, discounts, deadlines, and requirements change and vary by property; confirm current figures with primary sources and a licensed agent before relying on them. Coverage is subject to the terms of your policy. For a personalized review, contact Atesa Risk Advisors, an independent, RamseyTrusted brokerage licensed in Florida (2-20 General Lines).