While most people are aware that they need to carry homeowner’s insurance on their dwelling, if you’re in the process of building a new home, do you still have to have this type of coverage in case of damages and / or theft?
In a word, yes!
However, in this case, a regular home owner’s insurance policy isn’t the form of protection that you need. That is because with regular home insurance coverage, you are protected for items such as damage, theft, and liability (for instance, in case someone is injured on the property and files a lawsuit).
Rather, while you are in the process of building a home, and that home is still under construction, then in most cases, you would need to purchase a dwelling and fire coverage policy.
Here, for instance, the policy would provide coverage for the various perils that are specifically named in the policy. (In some cases, fire is included in the primary policy. If, however, it is not, then a separate fire insurance policy will also be required).
Typically, even though the contractor who is building your new home is also required to carry insurance coverage, this will generally only provide protection against the theft of materials that the contractor still technically owns.
In addition, the contractor will also usually have to have coverage for injuries that are sustained during the construction of the home – but this will only provide protection if one of the contractor’s or the subcontractor’s workers is injured.
So in this case, if you or anyone else who is not one of the workers or affiliated with the contractor or subcontractors becomes injured while on the premises, it is you – the property owner – who would be responsible for these expenses.
There is a long list of items to consider when you’re building a new custom home. If you’re planning to turn your dream home into a reality in the Orlando or Central Florida area, give us a call and we’ll walk you through the entire process so you’re well prepared.