Does Homeowners Insurance Cover a House Under Construction?
If you’re building a new home or renovating an existing one, insurance can get confusing fast. One of the most common questions homeowners ask is:
Does homeowners insurance cover a house under construction?
The short answer is not always — and that gap in coverage can leave homeowners exposed to costly risks. Below, we explain how insurance works during construction and what coverage you actually need.
TLDR (Quick Answers)
- Standard homeowners insurance usually does not fully cover homes under construction
- Builders risk insurance is often required during the build
- Coverage protects materials, theft, vandalism, and weather damage
- Policies can be customized for homeowners, builders, or investors
- Local agents help coordinate builders risk with permanent homeowners coverage
- Bundling insurance policies can reduce overall costs
Why Homeowners Insurance Often Isn’t Enough During Construction
Traditional homeowners insurance is designed for occupied, finished homes.
During construction:
- The home may be vacant
- Materials are stored on-site
- Contractors and subcontractors are involved
- Risk of theft, fire, and storm damage is higher
Because of this, most standard homeowners policies exclude or limit coverage during construction phases.
What Is Builders Risk Insurance in Florida?
Builders risk insurance is a specialized policy designed specifically for homes under construction.
It typically covers:
- The structure while it’s being built
- Building materials on-site
- Theft and vandalism
- Fire and certain weather-related damage
This type of coverage is especially common for new builds and major renovations in Northwest Florida.
Who Needs Builders Risk Insurance?
Builders risk insurance may be needed by:
- Homeowners building a new house
- Property investors or landlords
- Custom home builders
- Renovation projects involving structural changes
If you’re searching for builders risk insurance in Navarre, working with a local agent helps ensure the policy is structured correctly for your project.
When Does Homeowners Insurance Start?
Homeowners insurance typically begins:
- Once construction is complete
- After the home passes final inspection
- When the home becomes occupied
A local agent can help transition coverage seamlessly from builders risk insurance to a full homeowners policy without coverage gaps.
Does Builders Risk Insurance Cover Liability?
Builders risk policies usually focus on property coverage, not liability.
Depending on the project, you may also need:
- General liability coverage
- Contractor insurance
- Umbrella policies
A local agency can help determine what’s required and what’s already covered by your builder.
Why Work With a Local Insurance Agency?
Construction insurance isn’t one-size-fits-all.
A local agency understands:
- Florida weather risks
- Local building practices
- Lender and permit requirements
- How to bundle policies for savings
Whether you’re working with a Niceville insurance agency, looking for car insurance agents in Pace, FL, or need help with insurance in Destin and Panama City, local expertise makes a big difference.
Can You Bundle Insurance During Construction?
Yes — and this is one of the biggest advantages of working with a local agent.
You may be able to bundle:
- Builders risk insurance
- Existing homeowners insurance
- Car, truck, or motorcycle policies
- Motorcycle insurance in Pensacola
- Boat or RV insurance
Bundling often leads to lower premiums and simpler policy management.
Don’t Leave a Home Under Construction Unprotected
A house under construction needs specialized insurance coverage — and assuming your homeowners policy covers it can be an expensive mistake.
For homeowners and builders across Navarre, Pensacola, Pace, Niceville, Destin, and Panama City, working with a local insurance agent ensures:
- Proper coverage during every phase of construction
- No gaps between builders risk and homeowners insurance
- Access to multiple carriers and free insurance quotes
Protect your investment from day one by getting the right coverage in place.
Local Insurance Agent Near Me on the Gulf Coast of Florida
Welcome to Gulf Coast Insurance of Pensacola, the premier insurance company serving the Gulf Coast, Florida region. We specialize in providing the best car insurance, homeowners insurance, and business insurance policies across Santa Rosa, Escambia, Okaloosa, Walton counties, and beyond. Our commitment is to deliver affordable insurance solutions that do not compromise on coverage. Whether you’re in Pensacola, Pace, Gulf Breeze, Navarre, Milton, Perdido, Cantonment, Crestview, Niceville, Destin, Panama City, our team of experienced agents is here to help you find the perfect policy that fits your needs and budget.
Navigating through insurance options can be daunting, but at Gulf Coast Insurance of Pensacola, we make it easy for you. Our team works tirelessly to provide cheap yet comprehensive insurance estimates that will give you peace of mind knowing that your most valuable assets are protected. With a solid reputation among insurance companies, we take pride in our customer-centric approach, ensuring that every insurance quote is tailored to meet your specific needs. Don’t compromise on protection for your home, car, or business – contact us today for a free quote and experience the Gulf Coast Insurance difference. Additional insurance coverages we can help with include boat, health, RV, classic car/auto, life, flood, renters, and umbrella insurance.