Do You Need Builders & Vacant Risk insurance for Home Renovations?

Perhaps you’ve decided your home needs some remodeling or updates. Before you start the project, you should consider a builder’s risk policy or at least an endorsement on your home insurance. If you will be out of the house while the construction is going on, you may be required to have vacant home insurance. Generally, homeowners insurance has exclusions or coverage gaps for homes under construction or unoccupied for a month or more. Learn more from the professionals at McCormick Insurance Inc., serving Pembroke Pines, FL and the surrounding area.

Do You Need a Builder’s Risk Insurance Policy?

If you are building an entirely new home from the ground up, you will almost certainly need builder’s risk insurance. If you have an existing home but are making structural changes or major additions, builder’s risk insurance will also likely be required in that instance. The same goes for any extensive remodeling that requires gut renovations. It will also be required for any major interior improvements. A good general rule is that if the renovation would lead to a major financial setback if something were to go wrong, it would be wise to invest in builder’s risk insurance. It will cover theft, vandalism, property damage, liability coverage, materials coverage, property damage and even natural disasters. You may even be reimbursed for architectural fees, permit fees or soft costs such as living expenses should you have to vacate. 

McCormick Insurance Inc. Serves the Pembroke Pines, FL Area 

Making renovations on a home can be exciting, but it is not without some legal and financial risks. If you are in the market for builders & vacant risk insurance, please contact us at McCormick Insurance Inc. We’re here to help.