Builder's Insurance

 

Don't Start Building Without It

 

Builder's Risk Insurance

A builder’s risk policy covers the house under construction, protecting you from loss from fire, vandalism, theft, etc. 

The policy is typically for a one-year term and is meant for the construction phase only.

 

The builder’s risk policy will be replaced by regular home owner’s insurance when you’re ready to occupy.

You should have several options as to the amount of the deductible.

Some builders have the total coverage amount equal to the appraised value, minus land cost.

You might want to cover the total appraised value if given that option.

 

Liability

Determine if your builder’s risk policy provides liability coverage for third-party injury ─ such as a nosy neighbor walking around the construction site and tripping over his own feet.

He might try to blame you for that because you so thoughtlessly chose not to seal off your lot with moat, stockade, and razor wire to make your construction site a fortress.

Make sure that you have some kind of liability coverage.

Workman’s Compensation

Your state may require subcontractor’s to have workman’s compensation insurance.  If so, make certain that every sub you hire produces a copy of a policy that’s current.

 

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