How to Insure a Newly Built Home

Building a new home is an exciting milestone, but ensuring it is adequately insured is just as important as the construction itself. Home insurance for a newly built house differs slightly from insuring an existing home, as there are unique factors to consider, such as construction risks, replacement costs and builder warranties. Here’s what you need to know to secure the right coverage.

Understand Your Coverage Needs

A standard homeowners insurance policy typically covers the following:

• • Dwelling coverage may protect the structure of your home from perils like fire, wind and vandalism.
• • Personal property may cover belongings inside your home, such as furniture and electronics.
• • Liability protection may provide financial protection if someone is injured on your property.
• • Additional living expenses (ALE) may cover temporary living costs if your home becomes uninhabitable due to a covered event.

  For a newly built home, you’ll also want to consider additional coverage:

  • Builders risk insurance—If your home is still under construction, this policy protects against damage before the project is completed.
• • Extended or guaranteed replacement cost coverage—Construction costs can fluctuate, and this coverage ensures your home is rebuilt even if costs exceed the policy limits.

• Work With an Experienced Agent

  An insurance agent who understands the complexities of newly built homes can help tailor a policy to fit your needs. They will assess factors such as local building codes, fire protection services and materials used in construction to ensure you have adequate coverage.

  Consider Additional Protection

  Standard homeowners insurance policies do not cover flood damage. Purchasing a separate policy is essential if your home is in a flood-prone area. The same applies to coverage for earthquake and wildfire risk.

  Review and Update Your Policy Annually

As your home and belongings change over time, so should your insurance policy. Regular reviews help ensure you maintain adequate protection.

Insuring a newly built home requires careful consideration, but with the right coverage, you can enjoy your new home with peace of mind. Contact Home Loan Insurance to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.