How do I insure a home I'm building myself?

My wife and I sold our house after the kids moved out and I've been building us a smaller cabin myself. It's about 95% finished. I need to insure the remainder of the build and then transition into a standard homeowners policy once it's complete. What kind of insurance do I need, and how does that transition work when the homeowner is also the builder?

Congrats on your new home! Coverage while the house is being constructed is called builder's risk insurance, or sometimes called 'course of construction' insurance. It's designed to cover a structure while it's still being built, protecting against things like fire, wind, theft of materials, and vandalism. Most standard homeowners policies won't cover an unfinished home, so this is the bridge between construction and a permanent policy.

The owner-builder piece matters to insurers and is worth mentioning upfront to your agent or carriers when looking for quotes. When a licensed general contractor runs a project, the underwriting process is fairly standard. When you're acting as your own GC, managing the build and doing the the work yourself, insurers can view that as a higher-risk scenario. That doesn't mean coverage isn't available, it just might take a little more effort to find. I'd start by asking your current insurer if they offer it (or if they work with a carrier that does). I also suggest reaching out to a local independent agent in your area, especially someone who may already know you and understand the local market. They sometimes have access to more flexible options or local carriers that can work with your unique situation.

Since you're at 95% complete, transitioning to a standard homeowners policy may happen sooner than you think. Most insurers want the home to be substantially complete and habitable before they'll write a traditional homeowners policy. Once it crosses that threshold, you can make the switch. How they determine that is a question you'll want to ask insurers specifically.

In Alabama, it's also worth noting that the FORTIFIED building standard is popular and well-supported by the insurance market there (including discounts and grants). If your cabin meets or comes close to those standards, it could open up more options and better rates when you make the transition to a permanent policy. Check out the FORTIFIED website for more details.

When you're ready to start comparing home insurance policies, you can give our in-house agents a call here at The Zebra. They'll help you shop around to find the right fit for your needs after you move into your new place. I hope this helps!