Building a new home is one of life’s greatest milestones and achievements. Ensuring that you obtain and maintain the appropriate coverage is paramount to protecting your investment and future. Below is a guide to help homebuyers understand the fundamentals of Homeowners insurance, as well as the specific insurance required to build a new home with Wiseman.
Builder’s Risk Insurance
When securing a construction-to-permanent loan to build your new home, Wiseman requires that the homebuyer secure a builder’s risk policy specifically for the course of construction. This particular policy helps protect new home construction from property damage due to the following:
Builder’s risk insurance can also help cover additional soft costs, or expenses not directly related to construction if property damage causes a delay. This can include:
Every builder’s risk insurance policy is different, so costs vary depending on what you need. A good rule of thumb is to choose coverage limits that are equal to the anticipated cost of construction.
This particular insurance is required by the mortgage lender when closing on any type of home. It protects your home and possessions against damage or theft and there is no one-size-fits-all coverage, so you will need to work with an experienced agent or broker to determine the correct policy for you.
Flood insurance is a separate policy designed to help protect your home and belongings if they are damaged in a flood. Homeowners insurance does not cover flood damage. If your home is going to be built on land that is at high risk of flooding, your lender may require you to purchase flood insurance. With Houston’s high susceptibility to flooding, it is strongly encouraged to purchase flood insurance even if your lender does not require the policy.
Who you trust makes a difference. That's why we work with SGI Insurance, an independent agency with over 30 years of industry experience, knowledge, and customer satisfaction. SGI Insurance works with top-rated insurance carriers to provide you with solutions that meet your unique insurance needs. Receive one-on-one guidance with a knowledgeable agent committed to securing the best choices, rates, and protection for what you value most—your family and assets.
Call (936) 661-5103 today and ask for Susan!