Congratulations! You’re building your dream home. Enjoy the experience, but take precaution. Keep in mind that homeowner’s insurance does not cover a newly built home until it is “lockable.” Before the home is determined as such, home building insurance will be required to protect against theft of equipment, unsafe work sites, injured workers and so forth. While a few of the things mentioned should be covered by the builder, there are some responsibilities that fall solely upon the consumer. One of which is insuring against the location of the home building site.
Often, good insurance agencies will constrict the underwriting process on a home building project. This simply means that they will help guide clients through more stringent standards for insurability. These actions help protect the consumer from excessive losses due to disasters local to the area in which a home is being built. Are you building near the shore? In this case, your agent may underwrite your coverage and grant it on condition that you meet hurricane mitigation requirements; you will be required to place shutters on windows to meet stipulations, for example. Other cases may include purchasing an extra deductible for a hurricane or an earthquake. Keep in mind that a constriction can, at times, help keep premiums down.
Building a Home Close to a…
Insurance costs are also effected by the places in the vicinity of the home building site. For example, if you are building your new home in close proximity to a fire department, your premiums may be lower when compared to those of homeowners further away from the department.
A good insurance agency will “treat” you right upfront and ensure that you are adequately protected. The Humble & Davenport Insurance team has extensive experience in home building insurance. Contact us before you start your home building project.