New Home Construction Insurance in Point Pleasant, Point Pleasant Beach, Brielle, Brick Township, and all of New Jersey
Homeownership includes many risks and exposures that could lead to significant financial losses. All homeowners must understand the various perils that could affect their homes and families, and how to minimize potential damages with adequate insurance. These coverage needs may be particularly complicated and even more crucial for those who build their own homes. Fortunately, the agents at I & E Insurance Agency & Financial Services can help.
What Types of Insurance Are Needed for New Home Construction?
Many risks must be accounted for when building a new home. Fortunately, a thorough builder’s risk insurance policy can provide critical financial assistance in response to losses that may occur during construction. Although the details of these policies may vary, in general, builder’s risk insurance can cover the following:
- Fires
- Lightning
- Wind
- Hail
- Criminal activity (e.g., theft, vandalism, riots)
- Explosions
- Damage caused by vehicles or aircraft
- Falling objects (e.g., tree limbs, rocks)
It’s essential for people building a new home to understand the differences between builder’s risk insurance and home under construction insurance. While the former provides optimal coverage for new homes being built from the ground up, the latter is generally more suitable for those conducting renovations or building additions.
In addition to a builder’s risk policy, it may also be advisable to acquire enhanced title insurance, which can provide financial assistance in response to the following:
- Liens against the property
- Issues related to zoning and building permits
- Violations of subdivision ordinances
- Encroachments across property lines
Who Needs to Carry Insurance for New Home Construction?
Building a home is an immense financial investment that should be covered by a builder’s risk insurance policy. In some cases, a general contractor may be responsible for maintaining this coverage; however, this obligation may also fall to the property owner. Regardless, the following parties should be listed in a policy:
- Property owner
- General contractor
- Subcontractors
- Lenders
- Architects
Get the Right Coverage
Building a home can be exciting and rewarding, but such a substantial financial investment must be protected by adequate insurance. At I & E Insurance Agency & Financial Services, our experts have the knowledge and experience to assess a project’s unique circumstances and ensure the property has adequate coverage. Contact us today to get started.