When your house is under construction, the home insurance policy that you need can differ from the type of policy that you want after the project is completed. Even if the construction is primarily renovation work on an existing structure, you need a policy that reflects your concerns about the project rather than the complete property.
Consider a Builder’s Risk Policy
Unlike a basic home insurance policy, a builder’s risk plan is designed specifically for houses that are undergoing major renovations or are in the midst of construction. Generally, the policy will protect against common risks associated with building a new property. For example, it will protect against the loss of materials due to weather conditions or damages that occur during the process of constructing the property.
When you are planning to live in the house during the process of renovation or if the construction project is completed enough that you can move into the property, then you may be able to obtain a conventional home policy.
Plans for Older Homes
Construction projects that are designed to repair, renovate and re-build an older house may require a policy that is specifically designed for older properties. The policy, which is also called a HO-8 plan, will cover personal belongings and basic liability concerns, but it will not cover the structure of the building due to the higher risk of damages. You can change the policy after the construction is complete for more comprehensive protection.
Constructing a home or renovating an existing property can be complicated and may take time. The coverage that you need may vary, but there are options that address your primary concerns. Contact us to talk to an agent for more details.