How do I get coverage for my home while it is under construction?

Do I need to buy an insurance policy while my home is being built? We are about to break ground on our new home. It should take about eight months to complete and I wonder if there is insurance that I should have at this time.

Answer
“Congratulations; building a new home can be very exciting!
There are insurance policies that you should have for the property while it is under construction. It is called a builders risk policy and either you or your contractor can purchase it.
Your building contractor should have some liability policy in place in case they are at fault for any injuries that could happen. They may also have a builder’s risk policy to cover things like explosion and theft.
It is recommended to acquire a certificate of liability from your contractor that clearly states what they have covered.
If they only have a liability policy for the construction workers, it will be your responsibility to purchase the builder’s risk policy.
If this is the case, you may want to get in touch with a company like Progressive or Nationwide. Both offer homeowners insurance and builder’s risk policies.
Before you even start developing on the new site, you will need to purchase a standard homeowners policy.
This homeowners policy will have different coverage limitations during construction than when the project is complete.
Since a builder’s risk policy does not offer liability coverage, a homeowners policy needs to be in place in the event of any liability losses.”
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Shannon Martin
Answered on Jul 27, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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