What's the best way to get insurance for a home that is under construction?
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Insuring a home while it's under construction presents can raise red flags for home insurance companies. A house poses significant risks while it's being built via vandalism, theft, damage to building materials, or onsite equipment.
To account for this additional risk, insurance companies require the purchase of a dwelling under construction endorsement. Also known as builders risk insurance, this coverage add-on ensures your home stays insured while it's in the process of being constructed. Let’s outline the ins and outs of dwelling under construction coverage and where you can buy it.
If you have a major financial stake in a renovation or new home construction project, consider builders risk insurance. A typical homeowner’s policy may exclude from coverage damages to a home that is under renovation or construction.
If you’re not sure whether your project requires additional dwelling under construction coverage, speak to an insurance agent at your company.
As a general guideline, you may need builders risk insurance if:
Builders risk coverage, also known as course of construction insurance and dwelling under construction insurance, varies considerably by insurance company and by the project.
Generally, it covers damage sustained by:
Builders risk insurance offers less coverage than a typical homeowners policy. With dwelling under construction coverage, you receive no liability insurance coverage, personal property coverage, living expenses coverage, or medical payments to others insurance. This coverage is supposed to be temporary. Once the construction project is finished, you should update your coverage to a standard home insurance policy.
The availability of dwelling under construction insurance varies by the insurance company and by the project in question. If you’re in the market for course of construction coverage, speak with an insurance agent. A licensed insurance agent can walk you through the complex, situation-specific details.
Below are insurance companies offering dwelling under construction insurance.
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.