Having Your First Home Insured While It’s Being Constructed? Here Are Some Important Details To Keep In Mind

In the throes of your first home build, you spend a lot of time focused on the things that make up your dream home. You choose the architects and new home builders, measure out spaces, study design trends, and imagine yourself living in the finished product. 

But as exciting as it is to complete the to-do list of designing and building your household sanctuary, there’s another important decision to be made: It is the decision to have your new home insured while it’s still under construction. To most people, this is the last thing on their mind, but it shouldn’t.

Read on to learn the importance of this decision.

Before You Buy or Build a Home, Get Insurance First

One of the most important steps you can take before buying or building a new home is obtaining the right insurance policy. After all, if your home isn’t properly insured, you could wind up paying out of pocket for some hefty expenses. And if there’s one thing we already know about having a new home built, it’s that there are surprises around every corner. 

Of course, it can be easy to overlook certain important details when contractually obligated to move quickly and act without fully considering your options. But with an insurance policy in place, there comes a sense of preparation and security.

Building a New Home Can Save You Money on Your Homeowners Policy

One of the best ways to save money on homeowners insurance is to build a new home. Having an existing home increases your insurance costs because it is riskier than having a newer one. When you have your first home-built, it will be considered brand new, thus financially favorable for your insurance provider. Plus, new homes are built to code, which means safer construction and fewer unexpected repairs.

Your Builder’s Insurance Covers Your Builder, Not You

If you are building a house, it is important to plan and have your first home insured before construction begins. Many people assume that Builder’s Insurance will be sufficient. This is not true. It is important to know this and not assume. 

Your building contractor’s insurance policy covers him alone, and not your home. The Builder’s policy agreement does not include your building as a loss that they would cover. 

That means that if something catastrophic happens to your house while it is being constructed, such as accidentally knocking down a wall with the crane while moving a load of lumber, the builder’s coverage cannot be stretched to cover these losses under their policy limit.

Don’t Assume Anything About Insurance Policy

The financial protection of home insurance in the event of a major loss is something all homeowners should know more about. The coverage available to you and how to ensure that you are properly covered are some important topics to educate yourself on. 

With this in mind, it’s no wonder that selecting insurance providers can be overwhelming at times. There are many different details you should look into when finding the right insurance policy for your home. 

It is of the utmost importance that you should never assume when getting coverage of any kind, including your home. Where you are not clear, ask questions. As per www.woligonow.com, ask questions until you are satisfied and confident.  The financial safety of your home is major. Treat it that way.

Keep Detailed Records About Your Possessions, Their Values, and Their Condition

It’s important that you, as the owner and the person making the claim, be able to provide accurate information and records when claiming home insurance. You need to be able to list all of your possessions and their values while also keeping a log or journal of your home interior and exterior as it changes throughout the building process. 

If you’re undertaking renovations that impact your property’s overall value, this is more important than ever. If this is your first home, you’ll have a lot more things in it. This is why it’s so important to keep detailed records of everything, including pillowcases to furniture and plumbing.

Make Sure You know What Catastrophes Your Insurance Does Not Cover

There are advantages to getting coverage for your new home, but make sure you know what is and isn’t covered. If your house burns down, for example, you must find out whether there are any limits on the amount of money the insurance company will pay to rebuild or replace your home. You should also find out whether any deductible associated with replacing your home will apply

While basking in the euphoria of finally landing your new home, it makes a lot of sense to be prepared, and check with your insurance company or a specialist insurance broker. You don’t want to be caught out and not have the right cover in place.