Do I need homeowners insurance during construction?

Every decision matters towards fulfilling your vision when building your ideal home; from choosing your floorplan to choosing paint colors! But while all this excitement may distract, don't overlook an essential yet sometimes perplexing aspect - insurance. SummitCover knows all too well the difficulties involved with managing construction and homeowner's insurance in Canada, which makes this blog post designed to answer one crucial question - Do I need homeowners insurance during construction?

Traditional Homeowners Insurance Versus Builders Risk Insurance: Understanding the Difference

Your current homeowner's insurance is great at safeguarding completed properties against fire, theft, and weather damage - yet traditional policies do not cover construction work taking place on-site - this is where Builder's Risk Insurance comes into play. Builder's Risk Insurance provides financial protection during home construction by covering various risks that might occur such as:

• Damage Prevention of Structure: Including protection from events like fire, lightning strikes, vandalism, or severe weather incidents.
• Theft of Building Materials: There is a reduced risk of theft of the construction materials and the project will not be affected by delays or cost overruns.
• Additional Living Expenses Coverage: If perils not covered prevent you from completing your house, your policy may cover additional living expenses.

How to Choose Between Homeowners and Builders-Insurance Policies?

The next step is to learn and recognize the differences between the homeowners and the builders-insurance policies. Then, you can choose one of the policies listed below that best fulfills your demands. Let us consider several issues crucial for making a wise choice.

• An assessment of construction: The risk coverage for the minor renovations in the existing home may be an optional policy add-on insured by the insurance firm. On the other hand, the insurance companies may recommend buying the builder’s risk insurance as an extra protection to the homeowners during the construction of a new house or a comprehensive remodeling project.
• Your contractual agreement: Carefully consider who is liable for procuring insurance before signing. Though some builders might provide basic coverage, such as liability protection, for example, comprehensive protection may still be missing from most policies.

Benefits of Builder's Risk Insurance with SummitCover

Do I need homeowners insurance during construction? - Finding an insurance provider you trust provides peace of mind during construction. At SummitCover, we specialize in offering comprehensive Builder's Risk Coverage with many advantages:

• Customization: Every construction project is different, which is why our Construction and Realty Insurance Canada specialists collaborate closely with you to tailor coverage that fits both your specific needs and budget.
• Competitive Premiums: Our competitive premiums will give you all of the protection that's necessary without breaking your budget.
• Outstanding Customer Service: Our goal is to offer excellent customer service throughout your construction journey. If any questions arise during this journey or if claims need to be filed; our representatives are on call 24x7 to provide answers or guide through claims processes as necessary.

Important Considerations for Homeowners with Builder's Risk Insurance During Construction

Builder's Risk Insurance can offer homeowners significant protection, yet they must be mindful of certain limitations and additional considerations during construction:

• Coverage Exclusions: Carefully review the policy wording to understand any exclusions which could include natural disasters, acts of war, or intentional damages that might not be covered under your plan.
• Coinsurance clause: Some policies contain a coinsurance clause that requires you to maintain a specified percentage of the property's insured value at all times; failure to do so could reduce payout amounts in case of claims being filed against it.
• Personal Belongings: As a builder's risk policy shields the structures and materials on site, it is imperative to have one's assets there protected by another type of coverage such as renters insurance.
• Construction Liability Insurance: Although the builder's risk policy can save your property from accidents occurring on-site, it does not protect against liability for accidents or injuries incurred at the construction site. Trying to buy construction liability insurance might be a good solution in this case to protect your budget in any unforeseen circumstances.

Building Your Legacy: Beyond Construction

Do I need homeowners insurance during construction? Construction is only temporary - once your dream home has been constructed and your homeowner's insurance has provided its initial protections is still essential to protect it for years after completion. SummitCover can assist in this transition phase with comprehensive policies designed specifically to offer long-term coverage that offers peace of mind during this exciting stage of the journey.

SummitCover's experienced team can guide you through these complex waters to ensure you have adequate construction insurance. Please reach out to us so we may discuss your specific needs and create a tailor-made quote for Builder's Risk (COC) Insurance as well as any additional coverage needs you might require for your construction project!