Peace of Mind During Construction: Builder’s Risk Insurance Explained
At New World Custom Homes, we understand the excitement and anticipation that comes with building your dream home. However, the construction process also involves unforeseen circumstances. That’s why we strongly recommend considering builder’s risk insurance to protect your investment during this crucial phase.
What is Builder’s Risk Insurance?
Builder’s risk insurance provides financial protection for your new home while it’s under construction. It covers various potential damages, including:
Fire: This covers damage caused by accidental fires, which can be devastating during construction and lead to significant financial losses.
High Winds: Strong winds can cause damage to the structure, materials on site, and temporary structures like scaffolding.
Vandalism: Unfortunately, vandalism can occur during construction, and insurance can help cover the costs of repairs or replacements.
What’s Not Covered?
It’s important to understand that builder’s risk insurance has limitations. It typically doesn’t cover damages caused by:
Earthquakes: Specific earthquake insurance is typically required for comprehensive protection.
Floods: Flood insurance is often necessary depending on your location and flood risk.
Acts of War: These events are usually excluded from standard insurance policies.
Intentional Acts of the Owner: Damage caused by deliberate actions of the homeowner is not covered.
The Benefits of Builder’s Risk Insurance
Having builder’s risk insurance offers several benefits:
Peace of Mind: Knowing your investment is protected from unexpected events allows you to focus on the excitement of building your dream home.
Financial Security: In case of a covered event, the insurance can help cover repair or replacement costs, minimizing out-of-pocket expenses.
Fulfill Contractual Obligations: Some lenders or builders may require proof of builder’s risk insurance as a condition for financing or construction.
New World Custom Homes is Here to Help
At New World Custom Homes, we understand that construction insurance for log and timber homes might seem challenging. However, we’ve built strong relationships with insurance companies experienced in working with our customers.
Don’t hesitate to contact us! We’re happy to discuss builder’s risk insurance in more detail and connect you with reliable insurance providers who can assist you in securing adequate and affordable coverage for your new home. By taking this proactive step, you can ensure peace of mind and focus on the joy of building your dream.