Can a Homeowner Get Insurance When Building a House

Discover how homeowners can protect their investments during home construction with builder's risk insurance. Safeguard your dream house and mitigate risks

Can a Homeowner Get Insurance When Building a House
Building a house is an exciting endeavor, filled with dreams and possibilities. However, it also comes with risks and uncertainties. One of the common concerns for homeowners is whether they can obtain insurance coverage during the construction phase. In this article, we will explore the options available to homeowners, specifically focusing on builder's risk insurance and its significance. We will discuss the eligibility criteria, benefits, limitations, and other essential aspects to help homeowners make informed decisions about protecting their investment.

Understanding Homeowner's Insurance

Before delving into the details of coverage during home construction, it's crucial to understand homeowner's insurance. Typically, homeowner's insurance offers financial protection against damage or loss to a home and its contents due to covered perils like fire, theft, or natural disasters. It may also provide liability coverage for accidents that occur on the property. However, homeowner's insurance policies usually exclude coverage for homes that are under construction.

Coverage During Home Construction

During the construction phase, a homeowner needs insurance coverage that specifically addresses the risks associated with building a house. This is where builder's risk insurance comes into play.

Builder's Risk Insurance

Builder's risk insurance, also known as course of construction insurance, is designed to provide coverage for homes or structures that are under construction. It safeguards the homeowner's investment by offering financial protection against damage or loss caused by covered perils during the construction process.

Types of Builder's Risk Insurance

There are different types of builder's risk insurance policies available, and homeowners should carefully evaluate their options based on their specific needs and requirements. Some policies cover only the structure, while others may include materials, fixtures, and equipment. Homeowners should consider factors such as the location, duration of construction, and the scope of coverage when selecting a policy.

Duration of Coverage

Builder's risk insurance coverage typically starts on the day the construction begins and ends when the project is completed or when the homeowner takes occupancy of the new house. It's essential to clarify the specific duration of coverage with the insurance provider, as extensions might be available if the construction timeline extends beyond the initially estimated period.

Eligibility and Requirements

To obtain builder's risk insurance, homeowners usually need to provide relevant information about the construction project. This may include details such as the contractor's name, project timeline, estimated construction cost, and other pertinent information. Insurance providers may also have specific eligibility criteria, so homeowners should ensure they meet the requirements before applying for coverage.

Benefits of Builder's Risk Insurance

Builder's risk insurance offers several benefits to homeowners during the construction phase. Firstly, it provides financial protection against unforeseen events such as fire, vandalism, or theft that can cause significant damage and delay the construction process. Secondly, it may cover the cost of materials, fixtures, and equipment, ensuring that any losses or damages are covered. Additionally, builder's risk insurance can provide peace of mind to homeowners, allowing them to focus on the construction process without constant worry about potential risks.

Exclusions and Limitations

Like any insurance policy, builder's risk insurance has exclusions and limitations that homeowners should be aware of. Common exclusions may include damages caused by earthquakes, floods, or poor workmanship. It's important to carefully review the policy terms and conditions to understand the coverage limitations and exclusions, ensuring that any additional coverage required for specific risks is obtained.

Additional Considerations

When considering builder's risk insurance, homeowners should also evaluate additional factors. These may include the insurance provider's reputation, their claims process, and the level of customer service they offer. It's advisable to compare quotes from multiple insurance companies to find the best coverage and rates that align with the homeowner's needs and budget.

Comparing Quotes

To ensure homeowners secure the most suitable builder's risk insurance policy, it is wise to obtain quotes from multiple insurance providers. Comparing quotes allows homeowners to evaluate the coverage, deductibles, and premiums offered by different companies. It's essential to consider not only the cost but also the scope of coverage and any additional benefits or services provided.


Building a house is a significant investment, and protecting it during the construction phase is crucial. While homeowner's insurance typically does not cover homes under construction, builder's risk insurance fills this gap. By obtaining builder's risk insurance, homeowners can mitigate the financial risks associated with unforeseen events and damages that may occur during construction. It's essential for homeowners to carefully assess their needs, explore available options, and select a policy that offers comprehensive coverage, aligning with their specific requirements.


1. Can I obtain builder's risk insurance if I am acting as my own general contractor?

Yes, many insurance providers offer builder's risk insurance to homeowners who are acting as their own general contractors. However, it's important to confirm the eligibility criteria and requirements with the insurance company to ensure coverage.

2. Will builder's risk insurance cover theft of building materials from the construction site?

Yes, builder's risk insurance typically covers theft of building materials from the construction site, subject to the policy terms and conditions. Homeowners should review the policy details to understand the coverage limits and any exclusions related to theft.

3. Can I extend builder's risk insurance if my construction project takes longer than expected?

In many cases, insurance providers offer extensions for builder's risk insurance coverage if the construction project takes longer than initially estimated. Homeowners should discuss the extension options with their insurance provider to ensure continuous coverage.

4. Is builder's risk insurance mandatory for homeowners during the construction phase?

Builder's risk insurance is not mandatory for homeowners during the construction phase. However, it is highly recommended to protect the homeowner's investment and mitigate potential financial risks associated with construction-related damages or losses.

5. Can I bundle builder's risk insurance with my existing homeowner's insurance policy?

In some cases, insurance providers may offer the option to bundle builder's risk insurance with an existing homeowner's insurance policy. Homeowners should inquire with their insurance company to explore potential bundling options and any associated benefits.
Preston Morand
Preston Morand

Infuriatingly humble tv fan. Social media aficionado. Hardcore music ninja. Incurable pop culture fanatic. Award-winning zombie aficionado.

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