Are you remodelling or renovating your home and want to learn more about protecting your investment? You’ve come to the right place. Dwelling under construction insurance can be hugely beneficial for homes undergoing short-term, long, simple and complex construction projects.
As commercial insurance experts, ALIGNED is here to teach you all there is to know about dwelling under construction insurance as this is a complex area of insurance that crosses over betwen personal and commercial/business insurance. Below, we will explain what dwelling under construction insurance is, what it covers, and when to engage a commercial/business insurance expert like ALIGNED Insurance.
What is dwelling under construction insurance?
Dwelling under construction insurance is a provision that can be added to (or may even be included in) your home insurance policy and technically speaking, dwelling under construction insurance is not a type of insurance product, but a type of extension or endorsement that may be included or can be added to protect you and your property during short-term construction project. The first step in understanding your coverage is contacting your existing personal lines insurance company and explaining the length, budget and extent of the project. If your personal lines insurance company won’t cover it a separate commercial insurance product called course of construction and wrap up liability insurance needs to be purchased. Please note that this type of coverage is generally only available as part of a homeowners policy for short-term/simple projects and small construction budgets and need to be formally approved by your personal lines insurer. Howevever, if the project is longer, larger or complex a standalone policies may be required which is where ALIGNED comes in as we are a commercial insurance brokerage and course of construction and wrap up liability insurance are technically both commerical/business insurance products.
What does dwelling under construction insurance cover?
The goal of dwelling under construction insurance is to protect your home while it’s under construction. With this type of coverage, you may be protected against risks like theft, vandalism, fires, and storm damage, which are typically insured in a homeowners property policy section. However, you may also want to be protected against a set of risks unique to the construction process. These include:
- Premises liability while under construction
- Soft costs (licensing and permit fees, interest on work loans, etc.)
- Theft or damage of building materials and supplies
What doesn’t dwelling under construction insurance cover?
You can expect your dwelling under construction coverage to come with similar exclusions to your homeowner’s insurance policy. Therefore, you should not expect your dwelling under construction insurance to cover general wear and tear, pest or roden damage or infestations, losses from settling etc.