New Build Home Insurance

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New Build Home Insurance

Are you in the final stages of finishing your new home build? After all the time and energy creating your dream home in South Carolina it’s important you take the right steps to protect your investment. During the construction phase, the builder should carry insurance to cover risks (commonly referred to as a builder’s risk policy) like theft, vandalism, or damage during construction. Once your home is completed, you’ll need to transition to homeowners insurance to protect your investment.

Homeowners insurance for new construction is usually cheaper than insurance for older homes because new homes are less likely to have structural or internal issues and require less maintenance. For example, according to thezebra.com, the average premium for a new home is $966 per year, while a 10-year-old home costs $1,478 and a 20-year-old home costs $1,670. Rates can increase by as much as 53% once a home is 10 years old.

When considering home insurance for a new build, there are several key aspects to keep in mind to ensure you have adequate coverage:

1. Coverage for the Structure: Your homeowners insurance policy should cover the full replacement cost of the home in case of damage or destruction. Ensure that the coverage amount reflects the cost to rebuild the home if it’s completely destroyed.

2. Additional Structures: If your new build includes additional structures such as a garage, pool, shed, or fence, ensure these are included in your coverage. Verify if they are automatically covered or if you need to add them to your policy or if additional policies are required (this will very state by state).

3. Personal Belongings: Homeowners insurance typically covers your personal belongings, such as furniture, clothing, and electronics, in case of theft or damage. Make sure your policy provides adequate coverage limits for these items. If you house other valuables you wish to be insured (art, jewelry, etc) make sure to ask about seperate personal property insurance plans.

4. Liability Coverage: Liability coverage protects you in case someone is injured on your property and sues you for damages. This coverage is essential and should be included in your homeowners insurance policy.

5. Builder’s Warranty: Understand what is covered under the builder’s warranty versus what is covered under your homeowners insurance. The builder’s warranty typically covers structural defects and issues related to construction, while homeowners insurance covers damages due to perils like fire, theft, or natural disasters.

7. Deductibles and Limits: Review the deductible amounts and coverage limits in your policy. The deductible is the amount you’ll have to pay out of pocket before your insurance kicks in, so choose a deductible that you can comfortably afford.

8. Understand Exclusions: Be aware of any exclusions or limitations in your policy. Certain perils or types of damage may not be covered, so it’s important to understand what risks you may be exposed to.

When using Papay Insurance to insurance your new home build you can ensure you have comprehensive coverage that protects your new build home and your investment in the best possible way. We would love to discuss the coverage and policy options with you.