If you’re one of these people, you need to make sure, before your contractor gets started on your project, that you’re adequately protected in case something goes wrong during construction. That’s where a Connecticut builders risk insurance policy comes into play. It’s a special kind of property insurance you can buy that covers the unique risks of homes that are under construction. You may have learned about it when you went to borrow money for your project, because lenders nearly always require it.
Whether they do require it or not, or if you’re not relying on a lender but instead paying for the project on your own, it’s a good policy to consider. In Connecticut, the cost to buy builders risk insurance is a fraction of what you’d have to pay if something big went wrong.
A Connecticut Builders risk insurance policy is basically a property policy, which offers protection against losses that result from damage to the building and associated items while your home is being built. It can cover everything from fire to collapse to certain water damage, as well as debris removal associated with a covered loss.
It also covers losses you or your contractor might experience that result from the theft of materials during construction. For instance, it usually covers materials that have been or are about to be installed, including outdoor fencing, paving and landscaping materials, as well as fixtures.
It’s not the same as homeowners insurance, so it doesn’t cover any furniture or other personal, non-construction materials or belongings inside the house. So be sure to not start moving in before the job is done and we’ve gotten you set up with a good homeowners policy.
If you’re not building new but, rather, doing major renovation or, perhaps, an addition, your homeowners insurance may cover the work. Or it may not. That’s why it’s always a good idea to check with us at Paradiso Insurance, to make sure you don’t have any gaps that could cost you a lot of money if something bad happens.
There’s a big difference, at least in the minds of insurance companies, between a fully occupied home and one where folks may have moved out during an extensive renovation. And you don’t want to find out the change led to a situation where you’re not properly covered.
It makes sense to talk with an experienced local insurance professional like someone on the team at Paradiso Insurance to be sure the work—the work to make your dream home a reality—is fully covered. You also should make sure that the contractor or contractors you’re dealing with have adequate insurance, as well, and that you’re named as an additional insured under the contractor’s general liability policy.
Give us a call, stop by our office, or use the quote form on this page to get started on protecting this exciting part of The American Dream.
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