Why Homeowners Policies Aren't Enough for Home Building and Remodeling

Why Homeowners Policies Aren't Enough for Home Building and Remodeling

December 12, 2023

Why Homeowners Policies Aren't Enough for Home Building and Remodeling

When it comes to home building and remodeling projects, homeowners often assume their standard homeowners insurance policy will provide adequate coverage. However, this misconception can lead to significant financial risks and losses. In this blog post, we'll explore why homeowners policies aren't enough for home building and remodeling and why you should consider specialized insurance solutions, such as those offered by Barbee Jackson Insurance.

1. Coverage Gaps During Construction

Homeowners insurance policies are designed to cover your home in its completed state. When you undertake a construction or remodeling project, your home is in a state of transition, making it vulnerable to risks that aren't typically covered by a standard policy. These risks can include:

  • Structural Damage: During construction, your home's structure is exposed to various hazards, including weather-related damage and accidents on the job site. A homeowners policy may not adequately cover these risks.

  • Theft and Vandalism: Construction sites are often targets for theft and vandalism. Homeowners insurance may not provide sufficient coverage for stolen construction materials or damage caused by vandals.

2. Liability Risks

Home building and remodeling projects involve not only property risks but also liability risks. If someone is injured on your property during construction, you could be held liable for medical expenses and legal costs. It's important to note that liability insurance is not typically included in a Builders Risk policy. To adequately protect yourself against liability risks during construction, you must purchase a separate Premise Liability policy, which covers injuries and accidents on your property. Standard homeowners insurance policies may not offer adequate liability coverage for these situations.

3. Inadequate Valuation

Homeowners insurance policies are typically based on the estimated value of your completed home. During a construction or remodeling project, the value of your property can increase significantly due to the added improvements. If a disaster were to occur before the project is completed, you may not receive enough compensation to cover the increased value.

Why Choose Barbee Jackson Insurance?

  • Specialized Coverage: We provide tailored insurance solutions for home building and remodeling projects.

  • Property Protection: Our policies offer comprehensive protection for your property during construction.

  • Premise Liability: Keep in mind that liability protection must be purchased separately through our Premise Liability coverage.

  • Dedicated Support: Count on our team to assist you throughout your project, from selecting the right coverage to efficient claims management.

  • Competitive Rates: Barbee Jackson Insurance offers cost-effective insurance solutions, ensuring you get the coverage you need without breaking the bank.

About Craig Barbee, CEO of Barbee Jackson Insurance

I'm Craig Barbee, the CEO of Barbee Jackson Insurance, dedicated to safeguarding your construction and remodeling projects. With extensive experience in the insurance industry and a commitment to your project's success, I'm here to provide the coverage and support you need. Choose Barbee Jackson Insurance for peace of mind during your project.

Don't leave your construction or remodeling project's financial security to chance. Contact Barbee Jackson Insurance today to discuss your specific insurance needs and receive a personalized insurance quote. Your project's success is our ultimate goal.