If you’re building a home, you know that the process is long and complicated. There are many steps and lots of opportunities to go wrong. To protect yourself against the cost of theft or vandalism, injury of workers, and even fire or storm damage, you can buy house building insurance. This is a temporary policy that is in effect while your home is under construction.
The fact is that even if you have a great contractor who has lots of experience and skill, mistakes still happen. Workers can be injured. That’s one reason having building insurance is important if you’re building a new house or even just adding on. Here are a few things to think about if you’re considering this type of insurance.
First, contractors will already have some insurance. The nature varies from state to state, but certainly they will be protected against some damages that might occur during building. However, you may need to get your own liability insurance or become an additional party to the contractor’s insurance policy. This is because the property owner will generally be liable for what happens on the property.
You might also need insurance to cover subcontractors, who might not be covered by the main contractor’s policy. You’ll need to find out if this is necessary, and if so, add it to your policy. Remember to inform your agent if there are any big changes in construction or in the timeline, since this can affect your policy and amount of coverage.
Finally, when your policy expires, you may be able to convert it into a homeowner’s policy. If this is appealing to you, check with your agent when you’re getting quotes to see if this is feasible.