I’m planning to renovate my place completely and won’t be able to live there during the renovation. My insurance agent said I’ll need builder’s risk insurance because regular homeowner’s insurance won’t cover anything that goes wrong while the work is being done.
Is that true? Do any of you have this type of insurance or have you dealt with this before?
Thanks for the help.
“For us contractors, in most areas, we’re required to carry liability insurance—usually up to 5 million dollars. How much it costs depends on how long you’ve been claim-free. I’ve been an independent contractor for 3 years and pay around 400 CAD per month for mine, which covers everything from house fires to dogs stepping on nails.”
@Reece
Thanks for the info!
Yeah, it’s true. Unfortunately, builder’s risk insurance costs a lot more than regular homeowners insurance.
Tatum said:
Yeah, it’s true. Unfortunately, builder’s risk insurance costs a lot more than regular homeowners insurance.
That’s a bummer. Do you know how much more it costs, percentage-wise?
@Grayer
Probably around 50% more, if not double.
Tatum said:
@Grayer
Probably around 50% more, if not double.
Oh wow… thanks for letting me know!
In the US, builders are expected to have their own insurance.
Wray said:
In the US, builders are expected to have their own insurance.
True, but you still need your own insurance for the house.
Wray said:
In the US, builders are expected to have their own insurance.
True, but you still need your own insurance for the house.
So, both the builder and I need insurance during the renovation?
@Grayer
Yes, they cover different things. The builder’s insurance covers workers’ injuries and if they can’t complete the job. Your insurance (builder’s risk) covers damage, theft, and other incidents that might happen to your home during construction. It’s more expensive because you’re not living there, and an empty house has more risks, like fires getting out of control or theft.
You definitely want to have both, especially during a major renovation.
@Zander
Thanks for breaking it down!
@Zander
Hi! I’m starting a renovation in PA too. Do you have a builder’s risk insurance provider you recommend? My current homeowners agent isn’t much help.
Coop said:
@Zander
Hi! I’m starting a renovation in PA too. Do you have a builder’s risk insurance provider you recommend? My current homeowners agent isn’t much help.
I used a company called American Modern for our temporary renovation insurance. My Erie agent helped set it up, so you might want to check with them.