Home Building Insurance:
Tips on Getting the Right Coverage
Home building insurance is the insurance that homeowners get that protects their home as it is being constructed. A typical home takes anywhere from 6 months to a year to build and during this time there are a lot of things that can go wrong.
Home building insurance is one of the most cost effective and efficient ways to insure against losses during this period. There are many policies available, so it's a good idea to do your homework and make sure you are getting the right coverage for your needs.
Liability Considerations
One aspect to consider is your liability in the event that someone gets hurt on the job site. If the house is being constructed on land that you own, then your liability is definitely going to be increased.
If, on the other hand, you are buying a lot/home package from a builder/contractor then you will have to make sure that the contract you have with the builder clearly outlines who is liable for any damage or injuries.
Making Sure Your Builder Is Covered
In most states, it is required that builders have workers compensation insurance on the employees that they have on-site. Unfortunately, some builders either can't afford this coverage or simply don't spend the money on it.
So it is critically important that you get a copy of the builder's policy. This reduces your risk but it isn't necessarily the only person that will get sued in the event of injury or death. Some extra coverage could go a long way.
Theft is another concern. There are frequently piles of very expensive building materials left, in essence, unsecured on building lots every night and weekend. This is an open invitation for thieves. Having this coverage could easily pay for itself in the event of one theft.
Fire or natural disasters are another consideration. These types of losses can totally destroy everything on the site. Again, get specific coverage to make sure that you are covered. Know your policy (that is, read the fine print!) and don't rely on what anyone tells you is covered.
