Andrew Troi
I have had an incredible experience with Harrison Insurance and Jennifer in particular. She is true professional and handles all questions and concerns in a timely and kind manner. I’m so glad I switched my auto and renters policy to Erie and Harrison insurance.
Andrew Troi
Kayla Courtois
Fantastic customer service! Very knowledgeable, patient, and friendly. We were a new business starting up with absolutely NO clue what to do. Fred made the process very simple and got us the coverage we needed in a field that is hard to get coverage in!
Kayla Courtois
Thomas Sweeney
Used Fred for my executor bond, he worked with me over the phone as I was out of town to fill out the paperwork. The prices were much cheaper than anywhere else I found.
Thomas Sweeney
bryan acheson
Fred and team at Harrison Insurance are awesome. I requested a review of my insurance coverage for my business and found that I was grossly under covered. Fred explained where I was needing additional coverage and why it was important. Needless to say, I'm now a client. Fred truly cares for his clients. I think my premiums basically stayed the same, for additional coverage I might add, but I would have been willing to pay more just for the service and knowing I was being taken care of. I highly recommend Fred for your business.
bryan acheson
Kayla Furrow
Harrison Insurance is a great company to work with! I worked with Fred and the personal touch he adds makes you feel like you’re truly being taken care of, like you’re a part of the family. Fred never settles for the bare minimum, and if he sees something lacking in your insurance policy, he will tell you what he can do to fix it and what kind of options you have to make sure you’re covered in every area possible. Harrison Insurance is a small town agency, but their impact is huge. If you’ve got any kind of insurance, it is always worth giving Harrison a call and seeing where you can improve your coverage while lowering your rates. You definitely won’t regret touching base with them!
Kayla Furrow
Wes Tatum
Highly recommend this company. Fred Zehrer was my agent and he provided top notch service. The process was simple and Fred saved me over $600 a year on my business vehicle insurance. I can't say enough good things about Fred and Harrison Insurance. If you want peace of mind and fair prices, this is where you need to be.
Wes Tatum

Do I Need Homeowner Insurance During Construction?

Home Construction

Do I Need Homeowner Insurance During Construction?

Embarking on a construction project is a significant undertaking. It involves careful planning, budgeting, and risk management.

One crucial aspect often overlooked is insurance. Specifically, homeowners insurance during construction.

This type of insurance, also known as builders risk or course of construction insurance, is vital. It provides protection against a myriad of risks associated with construction projects.

From theft and vandalism to natural disasters and on-site accidents, the potential for unforeseen events is high. Having the right insurance coverage during the construction phase can safeguard your investment.

In this comprehensive guide, we delve into the necessity and benefits of homeowners insurance during construction. We aim to provide a detailed understanding of how such insurance can protect your property and what specific risks it covers.

Whether you’re building a new home or undertaking a major renovation, this guide will help you navigate the complexities of construction insurance.

Understanding Homeowners Insurance During Construction

Homeowners insurance during construction is a specialized type of coverage. It is designed to protect your property during the construction phase.

This insurance is often referred to as builders risk or course of construction insurance. It covers a wide range of potential risks that can occur during construction.

These risks include, but are not limited to:

  • Theft of materials or equipment
  • Vandalism
  • Damage from natural disasters
  • Accidents on the construction site

The Risks of Construction: Why Insurance is Imperative

Construction projects are inherently risky. The site is often a hive of activity, with various tradespeople and heavy machinery in operation.

This environment can lead to accidents, damage, or even theft. Without adequate insurance, these incidents can result in significant financial loss.

Natural disasters, such as storms or fires, can also cause damage. Insurance provides a safety net, protecting your investment from these unforeseen events.

In essence, homeowners insurance during construction is a risk management tool. It provides peace of mind, allowing you to focus on the project at hand.

Builders Risk vs. Standard Homeowners Insurance Policies

Builders risk insurance differs from standard homeowners insurance. The latter typically covers your home and personal belongings against damage or theft.

However, standard policies often exclude coverage for homes under construction. This is where builders risk insurance comes in.

It specifically covers the unique risks associated with construction projects. Understanding this distinction is crucial when planning your construction project.

Coverage Essentials for Construction-phase Insurance

Construction-phase insurance provides two main types of coverage: property damage and liability protection. Property damage coverage protects against loss or damage to the building materials and the structure itself.

Liability protection, on the other hand, covers you if someone gets injured on your property during construction. It can also cover damage to neighboring properties.

The specific coverage provided by construction-phase insurance can vary. It often includes:

  • Damage from natural disasters (fire, wind, hail)
  • Theft and vandalism
  • Damage from vehicles or aircraft
  • Liability for injuries or damages

Determining Your Coverage Needs

Determining the right amount of coverage is crucial. It should be based on the total value of your construction project.

This includes the cost of all building materials and labor. It also includes the projected value of the completed property.

Underinsurance can leave you exposed to significant financial risk. Therefore, it’s essential to accurately estimate the total cost of your project.

Obtaining the Right Policy: Steps to Take

Obtaining homeowners insurance during construction involves several steps. First, you’ll need to work with an insurance agent or broker.

They can guide you through the process and help you find the best policy for your needs. It’s important to provide them with accurate and detailed information about your project.

This includes the project’s timeline, budget, and specific details about the construction process. With this information, they can help you secure a policy that provides adequate protection.

Navigating Contractors and Subcontractors Insurance

Contractors and subcontractors should also have their own insurance. This is known as contractors’ insurance. It provides coverage for their own liability and potential damages.

However, homeowners should not rely solely on contractors’ insurance. It may not cover all potential risks associated with the construction project.

Moreover, subcontractors may not be covered under the contractor’s insurance. Therefore, it’s crucial to ensure that all parties involved in the construction project have adequate insurance coverage.

Interplay Between Homeowners and Contractors Insurance

Homeowners and contractors insurance work together to provide comprehensive coverage. However, they cover different aspects of the construction project.

Homeowners insurance during construction primarily covers the property owner’s interests. This includes the building materials, the structure, and liability for injuries or damages on the property.

Contractors insurance, on the other hand, covers the contractor’s liability. This includes injuries to their employees, damage to their equipment, and potential defects in their work.

Understanding the interplay between these two types of insurance is crucial. It ensures that all potential risks are adequately covered during the construction phase.

The Fine Print: Terms, Conditions, and Exclusions

Homeowners insurance during construction comes with its own set of terms and conditions. These define the scope of the coverage. It’s crucial to understand these terms to avoid surprises later.

Exclusions are specific situations or items that the policy does not cover. Common exclusions include intentional damage, normal wear and tear, and certain types of natural disasters.

Coverage limits are the maximum amounts the insurance company will pay for a covered loss. These limits should align with the value of the construction project.

Understanding the fine print is crucial. It ensures that the insurance policy provides the necessary protection during the construction phase.

Adjustments and Claims: What Homeowners Must Know

Insurance premiums may be adjusted as the construction project progresses. This is because the value of the property changes as more work is completed.

If an incident occurs during the construction phase, homeowners must file a claim with their insurance company. The claim process involves providing documentation of the incident and the resulting damages.

The insurance company will then review the claim. If approved, they will provide compensation up to the coverage limit.

Understanding the process of adjustments and claims is crucial. It ensures that homeowners can effectively navigate these situations if they arise during the construction phase.

Post-construction: Updating Your Homeowners Policy

Once construction is complete, it’s time to update your homeowners insurance policy. The completed project likely increased the value of your property. Your policy should reflect this change.

Additionally, the risks associated with your property may have changed. For example, new construction features or high-value items may require additional coverage.

It’s also important to review the terms and conditions of your policy. Ensure that it still provides the necessary protection for your property.

Updating your homeowners insurance policy post-construction is crucial. It ensures that your investment remains protected as your property evolves.

Case Studies: The Value of Adequate Coverage

Case studies provide valuable insights into the importance of homeowners insurance during construction. For instance, consider a homeowner who experienced a fire during construction. Their insurance policy provided critical financial protection, covering the cost of repairs.

In another case, a homeowner faced a lawsuit after a visitor was injured on the construction site. Their insurance policy covered the legal fees and potential settlement costs.

These case studies highlight the value of adequate coverage. They underscore the financial protection that homeowners insurance during construction can provide.

Final Considerations and Professional Advice

When it comes to homeowners insurance during construction, there are several final considerations. First, ensure that your policy provides comprehensive coverage. This includes both property and liability protection.

Second, consider working with an insurance provider experienced in construction-related policies. They can provide valuable advice and guidance.

Third, keep detailed records throughout the construction process. These can be crucial when filing a claim.

Lastly, consider seeking professional advice. An insurance agent or broker can help you navigate the complexities of homeowners insurance during construction.


In conclusion, homeowners insurance during construction is not just a good idea, it’s a necessity. It provides critical protection for your property and financial investment during a vulnerable time.

Remember, the right insurance policy can make all the difference. It can provide peace of mind, allowing you to focus on the exciting process of building or renovating your home.