Finding the right home insurance is extremely important – especially if that home is under construction. Failure to take the wrong precausions and purchase the right insurance can cost you lots of money if you’re not careful. We’ve come up with these insurance tips for new home builders and home owners alike. Regardless of whether you’re a builder or a buyer, these tips will help you.
- Commercial General Liability – This important policy applies to everyone. The home designer, architect, general contractor and all subcontractors should have a general liability. By carrying liability your architect is backed by a major insurance provider against planning defects.
- Builders Risk Insurance – Builders risk is a special policy that protects your new home while it is under contruction. When hiring a superintendent to build your home, you and the builder should always come to an agreement as to whether the buider’s risk policy is included in the contractors proposal. Along the way, your home builder may have to purchase other insurance policies and bonds based on local regulation. Dallas home builders must purchase a paving bond in order to finish a driveway. Again, this is something negotiated by you and your home builder.
- Home Insurance – Once your home is complete and you’re ready to move into your new castle, make sure that your home insurance is in place. Home insurance or “hazard insurance” is a package policy that covers the finished property, the contents in that home, and any out buildings or detached structures. At this point, your building is complete and you’re read to move in. Be careful! If you purchase home insurance too soon, you could jeopardize your coverage if your home stays vacant or unoccupied for more than 60 days.
- Home Warranty – Your home insurance policy covers you for catastrophic losses to your home like fire, wind, hail, and other major perils. A home warranty protects the items that are designed to break down like kitchen appliances.
As you can see, there are several steps along the way in which different insurance policies are used to protect your home. Now you’re armed with a little information. So the xext time you talk to a building professional, you and your home builder can ensure that your new home is insured through out the building process.