If you're building a house, do you need to buy house under construction insurance? That depends partly on who owns the land and the home during construction.
If the builder holds title during construction, the builder’s insurance should cover any damage to the building as it is being constructed. However, if you own either the land or any building materials, then you should look into getting some insurance coverage yourself.
Your Options for Insurance
One option for protecting a home that's under construction is to purchase a standard homeowners policy. Such a policy will cover your home against damage while the home is being built, as well as providing liability coverage in case a visitor is injured while visiting the site.
However, note that the standard policy will only provide coverage for contents if the home can be secured and locked.
Another option is a dwelling and fire policy, which only covers damage to the physical structure of your home. It does not cover theft or provide any liability coverage.
A Builder’s Risk is a third type of policy you could consider. This type of policy provides broad property coverage and insures the building materials, whether they are on the way to the job site, stored at the job site, or installed in the home.
If you have a standard homeowners policy on another home, you can extend its liability coverage to the home under construction and use a Builder’s Risk policy to cover the new dwelling itself.
Shop Around to Find an Affordable Policy
Whichever type of policy you decide to buy, it's important to shop around and compare quotes from different companies. Because insurance rates vary from company to company, you can save hundreds of dollars on your premium just by shopping around.
The fast and easy way to shop around is to go to an insurance comparison website. On these websites, you fill out a simple online form with your insurance information. Then, multiple A-rated insurance companies will send you quotes that you can compare.
On the best insurance comparison websites, you can even talk with insurance professionals if you have any questions about the best way to insure your home under construction.
Visit http://www.LowerRateQuotes.com/homeowners-insurance.html or click on the following link to get
house-under-construction insurance quotes from top-rated companies and see how much you can save. You can get more tips and advice in their Articles section, and get answers to your questions from an insurance expert by using their online chat service.
The authors, Brian Stevens and Stacey Schifferdecker, have spent 30 years in the insurance and finance industries, and have written a number of articles on house under construction insurance.
