Florida Homeowners Insurance For Homes Under Construction

One of the many factors involving Florida homeowners insurance is your location. This is especially true for homes during the construction process and for newly built homes. We wanted to share some information on this topic because we understand the stress that goes with buying a home is compounded when you are having a home built. Along with selecting your property, picking out the floor plan, and finding a contractor, many have justified concerns about protecting their new Florida home with the proper insurance during the construction process and after the home is finished being built.

Florida Homeowners Insurance during construction of new home

It is important to understand that your insurance needs are slightly different if you are having a home built, from deciding to purchase an existing home. You still want to protect your investment even though you do not actually take possession of the home until the closing. The builder carries limited protection and that is why in some cases, additional Florida homeowners insurance is needed to protect you and the property. At this point, many will also protect their ownership rights by purchasing title insurance.

The location of where a home is built in proximity to a fire hydrant and a fire station are important factors that can affect a Florida Homeowners Insurance policy. An insurance policy for a home being built in a remote location is likely to be higher because the nearest fire department could be located several miles away. This should be considered during the site selection process.

Will you have a backyard pool or trampoline? Is the pool access restricted? The National Association of Insurance Commissioners on its website notes that “Backyard items, such as a trampoline or pool, may require you to increase your liability coverage with an umbrella policy. In some cases, these items may even lead a company to cancel your policy.” Brett Young, of Erb and Young Insurance adds, “a pool that isn’t fenced or isn’t screened could cause a cancelation if not disclosed. Therefore, having a pool is not going to cause cancelation. It is all about it being disclosed and enclosed.”

In addition to location, the size of your new home and the constrction materials used does matter. The higher the square footage of a larger home will usually require more material and content that needs to be insured. Your Florida Homeowners Insurance policy premium will also vary depending on the materials used for your Siding and Roofing. Keep in mind that wood is more likely to be involved in a claim. This includes wood siding and wood shingles that tend to catch on fire and contribute to water problems. Brick or stucco siding and having a clay tile roof or asphalt roofing materials cost less to insure because they statistically produce less claims. Before you build or buy a newly built home be sure to ask your Erb and Young Insurance agent to quote different materials to see if the upgrade in material is cost effective.

Florida Homeowners Insurance During the Construction Process

Depending on who actually owns the land during construction will have an impact on your insurance coverage needs. For those that hire a contractor to build the house and handle the process, in most cases the contractor owns the land. If that is the case, nothing is in your name, and therefore the liability should fall entirely on the general contractor if something were to happen to the home or on the land. On the other hand, if you own the land and then select to hire a contractor to build your new home, you will need liability coverage to protect you and your assets in the event someone is injured on your property. With that said, if someone is injured on the property while the house is under construction, the contractor and homeowner can still both be sued. Unless you are specifically added to the policy, the contractor’s insurance policy will not protect you and your assets.

Keep in mind that a standard Florida homeowners insurance policy covers damage to the home and theft. Most insurance policies will also provide you with liability coverage, protecting you from a lawsuit. None of your personal property is covered until the homes construction is completed and considered secure. It makes sense that content cannot be insured until the home is secure and lockable. Another option for those that are having a home built, is to purchase a dwelling and fire policy for the protection of the physical structure only. Despite the name, dwelling and fire coverage is not limited to just fires because most of the time, additional hazards are also covered in these policies, such as explosions, wind damage and vandalism. Liability coverage may be provided, but theft protection usually is not.

It is best to contact your Erb and Young Insurance Agent to make sure that you have the right coverage for your circumstances. Erb and Young Insurance offers Free Homeowners Insurance reviews and specializes in creating customized Florida homeowners insurance policies. By going over the big picture and analysing the fine print, we will make sure that you have the right coverage to keep you and your assets protected by an insurance policy that is the right fit for you.

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