Residential Construction Insurance
What Does Residential Construction Insurance Mean?
Insurance laws in the U.S. are governed by state regulations, meaning that most insurance professionals, including brokers, are typically licensed only within their specific state.
A resident agent generally serves as the company’s representative for that state.
Insuranceopedia Explains Residential Construction Insurance
The insurance market recommends obtaining a homeowners policy even before the construction of a house begins. This helps anticipate risks during the building process, such as weather damage, theft, and vandalism, which could affect not only the structure itself but also the building materials.
The property owner should also review the insurance coverage of the builder and their staff. If they are not adequately insured, the owner may need to secure a builder’s risk policy. This policy covers tools and materials used for construction, even if they are damaged outside the property premises.
Additionally, contractors must carry a liability policy to cover any mistakes made during construction, even if those mistakes are only discovered after the building is completed.
