House construction is a long process. Things like accidents or natural disasters can present unexpected risks and damage during construction. Don’t assume that your builder’s insurance will protect you. You need construction insurance to protect your home against risks while under construction.
What Is Construction Insurance?
Construction insurance is meant to protect homes under construction from direct damage. It protects your house against the unexpected that could affect your home during the project. You are protecting your house against theft or damage by purchasing construction insurance.
Why Is Construction Insurance Important?
Construction insurance is required to protect your home against personal liability considering the risks involved in everyday construction. Whether you’re building a new house, finishing your basement, or repairing the garage, you need coverage in case of the unexpected. Your homeowner’s policy won’t cover construction-related losses. It’s essential to have construction insurance, as some mishaps don’t fall under the builder’s coverage.
For lenders, you also need a construction insurance policy to cover the loan amount or the cost of building your home. Banks will not fund your home if you don’t have this coverage.
What Is The Cost Of Construction Insurance?
The cost of contractor insurance varies and depends on the coverage you want and the insurance provider you choose. Also, your house’s size and location will determine the cost of contractor insurance. When selecting your policy, make sure you consider the limits, deductibles, coverage, and payouts rather than the price alone.