Whether you are putting an addition on your current home or building a brand new home, you need insurance to cover it. Most homeowners are under the impression their homeowner’s insurance in Dallas will cover any damage or theft that occurs during the building process; however, this isn’t always the case. In many cases, an additional builder’s risk insurance policy is necessary.

Coverage for Physical Damage to the Building

When your home is exposed to the elements because contractors are working on your home, the structure could be susceptible to damage. Rain, hail, wind, and other weather can severely damage your home and leave you with the bill if you don’t have a builder’s risk policy. Some of the other damage this type of insurance policy provides include fire and vandalism. While some homeowners think the builder’s policy will cover this damage, their insurance coverage is designed to handle any damage they may cause.

Coverage for Stolen Property

Builders often leave materials lying around the construction site, entrusting it will be there the next day when they return to work. Unfortunately, there are individuals who see value in these materials and may steal them if they aren’t properly secured. When this property is stolen, some builders may have some coverage, but in many cases, the materials belong to you and have become your responsibility. You need builder’s risk insurance to cover these materials and other items that may become exposed during the construction on your home.

Coverage for Poor Workmanship

Many builders have insurance coverage that protect the homeowner during the building process, but some only have the bare minimum for coverage, leaving you without the funds you need to handle poor workmanship. For this reason, it’s essential to look into a builder’s risk policy before you begin any major construction project. This coverage will go beyond what a builder may have and will protect you if that builder doesn’t follow through on their promises or leaves behind a home that requires extensive repairs. Building a new home or completing a major construction project on your existing home will create the home you’ve always imagined. During the construction process, however, you are likely to need more than your average homeowner’s insurance in Dallas. Instead, you should look into buying builder’s risk insurance to ensure you have all the coverage you need. Don’t be lulled into a false sense of security with your existing policies and the insurance carried by your builder. Talk to an experienced insurance agent to determine whether you will need a builder’s risk policy. If you are interested in purchasing builder’s risk insurance for your construction project, contact us. Our Dallas, TX, agency can provide all the insurance you need.

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