Builders risk vs Homeowners with construction coverage?

[Ambilobe]

I plan to build a home and will be using a GC for everything.
My options of coverage include
1) Homeowners with building endorsement, and definitions that clearly say house is not vacant when under construction
2) Builders risk

I will be named as additionally insured by the GC for the project.

Why would I want to pay triple for builders risk without liability, when the Homeowners covers the structure while under construction, and includes personal liability?

 

[fed up]

I wrote a policy once or twice for this. Depending on the carrier, the policy must be in force before the footers are dug or before the walls go up. The policy covered the building as it goes up and any material on site. There was coverage for the homeowner for liability but nothing for any workers comp. If you are doing the subcontractor work or hiring people you would need commercial coverage and workers comp. You do not want to place a claim on your homeowners policy for a construction accident.

 

[InsCommentary]

I don’t know what kind of homeowners “building endorsement” you’re referring to, but a builders risk policy covers things not covered by a homeowners policy.

 

[Ambilobe]

The building endorsements cover
1) materials
2) liability when I am living at another location until the house has a new CO.
3) theft and vandalism at worksite.

I attached the policy. Looks complete to me .

 

[fed up]

I read no coverage until house has been completed to at least fully enclosed and lockable. I also worry about liability claim against a home under construction. Your project may be insured but you could end up with a non renewal at occupancy or first year expiration if you place claims on the policy while under construction. You think it looks complete, what is your agent advising?

 

[Ambilobe]

Under dwelling, I see coverage of structure, and the materials at the site. (House under construction is not vacant) . Its under dwelling coverage.

The statefarm agent says this is perfect.
The other agents say to buy builders risk, but it is up to 3x as much.

Both liability for builders risk and state farm is the same.. they both do not cover workers or workers comp. I will be listed as secondary insured on my builders policy for liability. My personal will just overlap that.

 

[fed up]

Page 4 of the policy defines Building Structure. Must be completely enclosed and lockable. No doors, no coverage. No windows, no coverage

 

[Ambilobe]

That means this policy will not work on a new construction. I need builders risk!
I knew I should have come here first
Thanks so much

 

[AZDave]

I usually recommend a builders risk policy over a homeowner's policy. Here in AZ, the difference in premium is negligible (not triple) . One good reason would be to keep any claims that would arise out of your personal insurance and into the builders risk.

No need for that builders risk policy to have liability. Have the GC endorse you as an additional insured on his GL policy.

If the GC doesn't carry GL and your plan is to occupy that location , using a homeowner's policy with the proper course of construction endorsement would also work just fine.

A good read on builders risk:

 

[FingerKirk]

As a builder you have different plans and sometimes it's useful to have in effect priot to starting the construction. I once had all the material and a forklift stolen at a project I was working. Without the insurance it would be devastating! We have most of the tools needed to repair furniture and woodwork-related fixes arranged. We even got a small excavator from Construction equipment for sale | Fleet Up To improve the road structure in the paths around the house as it was cheap, and after we are done with it, we can sell them back with them too. I'm still keen On exploring how a Kubota or a tractor would be a permanent solution later on.