Should You Have Insurance on a Home That is Still in the Process of Being Built?

Should You Have Insurance on a Home That is Still in the Process of Being Built?

Should You Have Insurance on a Home That is Still in the Process of Being Built?Insurance is one of those “necessary evils” in life that may seem unnecessary to pay for, yet can be a tremendous blessing if and when you need the coverage. But, while most people know that insurance is required on their home(s) and vehicle(s), is it really necessary to carry coverage on a new custom home that is still in the process of being built?

In a word, YES.

Even while your new home is under construction, having insurance coverage is a definite must. In this case, while you don’t need to have a regular home owner’s policy on the property – which will oftentimes cover items like personal property and theft – you should have a policy that will cover the dwelling, as well as fire coverage.

In this case, the structure of your new home would still be protected financially against the various perils that are named in the insurance policy. (In some instances, fire damage may be covered under a dwelling policy – but if it isn’t, then it is important to purchase this type of coverage separately).

Typically, the contractor that is building your new home will be required to carry insurance that covers the theft of materials – primarily because it is the contractor who owns these items until they have actually been added to the home.

Likewise, the contractor will also be responsible financially for injuries that may be suffered during the construction of the home. However, this coverage only extends to the contractor (and possibly also the subcontractors that are hired to work on the project).

If you are considering the building of a new custom home in the Orlando or surrounding Central Florida area, then give Rare Builders a call. We’ll answer any questions that you may have that pertain to the new home construction process, as well as related topics.