home construction insurance

If you assume the contractor’s insurance is going to take care of all claims you may be wrong

You can purchase a home insurance policy to protect you when a home is under construction but only a few home insurance companies will offer this type of policy

What type of insurance is needed on a home that is new construction?

You can purchase a builders risk policy or a special homeowners insurance policy

Each policy has its benefits but if you are responsible for the construction of the home, not the builder, you want to find an insurance company that can write the special endorsed homeowners insurance policy


We have two companies that will cover the home in Louisiana from the ground up to completion

The benefit is you only have to buy one insurance policy


If you want to learn more about our New Louisiana Home Insurance Construction Program 

click here


Most builders risk policies make you cancel the policy once the home is complete and purchase another home insurance policy when you move in

Our New Construction Home Insurance program makes it very easy to protect you from the first nail to sliding your key in the door


This policy is for insurance on the home during construction but once you move in there is no more coverage and most of these don’t include liability (injury and property damage you’re legally liable for)


Example of need for liability

You want to show your friends the progress of your new home and you invite them to the construction site to see the house.

One of your friends trips over some wood and turns their ankle.

A little swelling but they say they’re “ok”

They get home and the swelling gets worse, they go to the doctor and they need surgery

If you have a builders risk policy you’re paying the medical bills and their attorney out of your pocket


Home Insurance for New Construction

You can purchase a home insurance policy for a home under construction but you need to make sure the insurance company allows under construction

98% of all home insurance policies would exclude this type of risk


When your home is under construction make sure the right changes or endorsements are added to the policy

Theft of building materials is an important add on you must have


If you purchase a home insurance policy  that is under construction you need to make sure you intend to occupy the property as your primary residence

Here are some requirements on our New Home Under Construction Program

  • Construction must be completed by a licensed and insured contractor
  • Construction must be completed within 12 months of the policy effective date
  • After the home is built you must occupy the property
  • The insured customer must be the homeowner not the contractor


Using a home insurance policy for a home under construction is perfect for

Owner Occupied Renovation

-You’re living in the home while doing renovations on more than 40% of your home

Non-Occupied Renovation

-You’re living in another location for more than 60 days while your home is being renovated

New Build Construction on vacant Land

-You’re building a new home on vacant land


If you want to learn more about our New Louisiana Home Insurance Construction Program 

click here




Builders Risk is a great product if you don’t intend to occupy the property

Builders Risk policies don’t include liability and you must have this protection

You must cancel a builders risk policy upon projection completion and buy a new home insurance policy


New Construction Home Insurance

One policy from vacant land to project completion when you move in

Includes liability for you in the policy


Why is Liability insurance important on a new home construction?

If you don’t own the land or the home until the project is complete all the liability and insurance will be provided by the residential home builder

If you buy the land and are responsible for the insurance on the new home you must have liability insurance

If someone is injured on the property (not subcontractors or employees of the contractor) such as a friend, neighbor or neighborhood kids you must have liability insurance to defend you against any injury claims

Liability insurance protects your assets from injury claims and provides you a legal defense even if you are not negligence

Most home insurance policies can go up to 500,000 liability

If you need more than 500,000 you need to purchase a personal umbrella policy

Limits can go up to 10,000,000 if needed


If you want to learn more about our New Louisiana Home Insurance Construction Program 

click here