Building a new home is one heck of a way to kickstart 2018. You have much to tackle, though, beyond the custom home construction itself. Clients often ask us if they need construction insurance when building a new home. We will do our best to answer this complex question.
The short answer is “yes.” You do need construction insurance, though the process is a lot more complex than just applying with a property insurance provider.
1. Make Sure the Insurer Will Cover You
A common mistake is holding off on the insurance until AFTER beginning the home construction. You need to take care of the insurance well beforehand. Many people assume their current home insurance policy will cover them. This may not be the case. Underwriters may not sign off for a number of reasons, such as if you’re building the home in a “high-risk” location.
2. Builder’s Insurance ≠ Home Insurance
Home builders typically have “builder’s risk” insurance. The policy generally covers the contractors from loss during construction. This may be damage from winds blowing a tree into the home or an incident of that sort. The soon-to-be homeowners should have their own policy.
3. Use Insurance-Friendly Building Materials
Some providers offer discounts for home remodeling or construction that includes certain materials. These include higher quality parts or additions that lower the risk of extensive damage. Examples include stucco over wood siding or piping with a water detector shutoff valve. This reduces premiums and also reduces the likelihood of having to file a claim.
Ready for a new start? Contact Murphy Construction to begin planning for what will soon be your new ‘home sweet home.’ See our testimonials from previous satisfied clients. Don’t forget, though, that you need construction insurance when building a new home.
Serving clients in Coeur d’Alene, Spokane, Post Falls, Hayden, Rathdrum, Hauser, East Spokane, Liberty Lake, Spokane Valley and Area