The Insider's Guide to Custom Home Builders Insurance In Texas
Building your custom home can be a challenging
yet rewarding experience. All that hard work will result in a home
of your own that you planned and designed yourself. You certainly
do not want your dreams to be destroyed for lack of the proper
Texas custom home builders insurance. Here are some tips to help
you get the right coverage for a great deal.
While your project is under construction you will need to have
builders risk insurance. This type of insurance covers the unique
set of risks and circumstances associated with building a custom
Texas home. If you are getting the policy as the owner or builder,
you must have the real work completed by licensed contractors.
If it is a new construction policy, it covers the materials that
are at the work site as well as the structure while it is being
In order to determine the amount of coverage you need, you must
estimate what the value of the completed project will be. Builders
risk home insurance in Texas will only cover the value of the completed
structure. The best way to come up with this number is to use a
These policies cover a wide variety of losses. Here are the categories
that most policies will cover: theft, vandalism, fire, wind, hail,
lightning, explosions, and aircraft or vehicles. Your policy may
cover different things, so be sure to read the entire policy including
the fine print. It would be a tragedy if something that you assumed
was covered turned out not to be.
Some things are usually excluded from custom home builders insurance
in Texas. Earthquakes, employee theft, war, government damage,
water damage including flooding are just a few of the standard
exclusions. In some places you can buy additional coverage for
things like earthquakes and floods so make sure you ask your agent
And in most regards this is similar to other types of insurance, such as Texas Auto Insurance for example, in that you can pick and choose the amount of cover and how comprehensive it really is.
There are some things to know about your custom home builders insurance
policy in Texas. One thing that is important to understand is that
a builders risk policy does not usually cover liability. If someone
is injured on your property, this type of insurance will not pay
for medical care or compensation. Any contractors should be able
to prove that they have their own separate liability insurance
as well as auto insurance. Even so, you should get a separate liability
policy, just in case.
Another thing to keep in mind is that most builders risk insurance
policies in Texas do not cover workers tools. If they are damaged
or stolen on the job site, your policy will usually not cover the
loss. But again, keep in mind that these contractors should have
their own liability insurance policies to offset these types of
losses. Either way remember that home owners insurance is important to get.
Every custom home builders insurance policy in Texas is different.
Some cover only the basics, while others offer extended coverage
for things that you might not think of. It is best to obtain quotes
from several different companies before making your decision.