Help! Home Construction Started, but I Don't Have Builders Risk Insurance

Help! Home Construction Started, but I Don't Have Builders Risk Insurance

December 27, 2023

You've embarked on the exciting journey of building your dream home, but there's a significant gap in your protection plan – you don't have Builders Risk Insurance. In this blog post, we'll explore the critical importance of securing Builders Risk Insurance before or shortly after the construction process begins, highlighting what you can do if your project is already underway.

Why Builders Risk Insurance Matters

Builders Risk Insurance is like a safety net for your construction project, providing coverage for unforeseen risks and losses during the building process. It safeguards not only the structure but also materials, equipment, and more. However, the key here is timing.

The 30% Rule: When It's Too Late

One important thing to realize is that Builders Risk Insurance typically cannot be obtained if your project is more than 30% complete. This rule is in place to prevent individuals from seeking coverage after significant progress has been made, potentially after learning about impending risks.

Securing Coverage Before the Point of No Return

To ensure that your home construction project is adequately protected, it's essential to secure Builders Risk Insurance before or shortly after the slab is poured or the pilings are installed. Here's why:

  1. Comprehensive Protection: Builders Risk Insurance covers various risks, including fire, theft, vandalism, and more. The earlier you have coverage, the sooner your investment is safeguarded.

  2. Soft Costs: Beyond physical damage, Builders Risk Insurance often includes coverage for soft costs. This includes expenses like architectural and engineering fees, permits, and legal costs, which can accrue even if construction halts due to a covered loss.

  3. Avoiding Risk Exposures: Until the structure is substantially completed, it remains vulnerable to various hazards. Don't leave your investment exposed to potential disasters or losses by delaying insurance.

What to Do If You're Already Underway

If you've started your construction project without Builders Risk Insurance, don't panic – there are still options. Contact an experienced insurance provider like Barbee Jackson Insurance immediately to discuss your situation. They can help you explore solutions, although the process may become more complex as your project progresses.

About Craig Barbee, CEO of Barbee Jackson Insurance

Craig Barbee is the CEO of Barbee Jackson Insurance, a trusted name in the insurance industry. With years of experience and a deep understanding of the unique insurance needs of construction projects, Craig is committed to helping clients protect their investments. When you choose Barbee Jackson Insurance, you're choosing a partner dedicated to your project's success.

If you've already started your home construction project without Builders Risk Insurance, act quickly to secure the coverage you need. Timing is crucial, and the 30% rule can limit your options if you delay. Builders Risk Insurance offers comprehensive protection and peace of mind during the construction process, ensuring your dream home is built on a solid foundation of financial security.