Building a new home requires attention to detail but while you’re planning just where to put your sun room and whether or not the carpets should match the drapes don’t forget to make sure your construction project is properly insured from foundation to rafters.
In this post we will help you understand what exactly builders risk insurance is, why you need it and what exactly it covers.
What is builders risk insurance?
The aim of a builder’s risk insurance policy is to provide temporary coverage during the construction phase of your home building project. Policies are available for a range of construction projects from new construction to major renovations and small remodelling projects and additions.
Do I really need insurance during construction?
Just because your general contractor “has insurance” doesn’t mean you or your property are covered when your home is being built and until your home is complete, it won’t qualify for protection under a homeowner’s policy, which only covers events that occur on or to residential property. This is why as a homeowner, it’s smart for you to have your own policy to cover your land and your personal property you may have on the job site.
What does it cover?
Builders risk insurance is specifically designed to cover homes while they are under construction this means that you will not receive liability cover or any protection for the home’s contents since there won’t typically be any personal possessions at the construction site. Your builders risk insurance typically covers theft, vandalism, fire, wind, lightning, hail and explosion.
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