Congratulations on buying a new home or renovating the one you already have! It’s an exciting process and of course you want your home to be protected as it’s under construction. Whether you’re using a contractor or building it yourself you’ll need a special type of insurance as many standard home insurance policies exclude coverage while the home is under construction or renovation .
Generally you need to have a “course of construction��? policy which covers the home while it’s under construction – after that a regular homeowner’s insurance policy will take over. If you’re using a contractor you’ll also want to ensure they have proper insurance as sometimes their own insurance will cover the building during construction. You’ll want totalk to your brokerabout your particular situation to ensure you have the coverage that’s right for you.
Risk of Loss Coverage
While your home is under construction you will need to have a “course of construction��? policy which will protect the home for the duration of the construction project. After that you can return to a regular home insurance policy.
If you’re building or renovating the home yourself you will have to add this insurance onto your existing policy. If you’re using a contractor they may provide this coverage for you. In some cases however contractor companies require you to take out your own coverage.
Speaking toyour brokerto determine exactly what is and/or is not covered is the best thing you can do to ensure your home is protected during the construction period.
One of the most important parts of your insurance policy during construction is the liability aspect. As it is a job site there are many dangers to workers and visitors. If someone gets hurt this could be incredibly costly. It’s important to make sure that a course of construction policy is in place to protect you as this policy gives you the liability coverage you need while your home is being built or renovated.
Renovations and building are an exciting time – and probably a little stressful too. Spare yourself some potential headaches by talking to your contractor and finding out what insurances they have and what is covered. Then you cancontact your brokerto discuss this coverage to ensure you’re properly covered and your home is protected.