insurance while building is under construction?
LE
10 years ago
Featured Answer
Sort by:Oldest
Comments (25)
Houseofsticks
10 years agoworthy
10 years agoRelated Discussions
Title Insurance On New Construction
Comments (17)"They are covered and do not really care about your coverage. That is why owners title insurance is always optional, while the lenders policy is required." - brickeyee Perhaps, but in this case the title company services only credit unions in the local area. In fact, they are a wholly owned subsidiary of our own credit union, which is handling the loan. Credit unions are supposed to exist for the benefit of their members. All the folks on the other side of the table at closing (CU loan officer, CU construction mortgage official, and title company official) seemed genuinely surprised when I questioned declining owners title insurance. They flat out stated that none of their construction loan customers ask for or get owner's title insurance, which is why I posted here. Bear in mind that this closing covered both loans. The construction loan automatically converts to a fixed rate conventional loan on completion of the house. There is no second closing where title insurance would come up in the future. The CU in question has a very active construction loan program with dedicated officials overseeing it. It isn't a small or part time operation. They run a full business credit/risk analysis on the contractor, and they send specialists out to inspect the build on a regular basis and prior to any payout. I'll be calling the title company next week for further discussions....See MoreCourse of Construction Insurance for owner/builder
Comments (3)My brother told me to look into a liability policy (course of construction)for myself. I don't want to talk to my insurance company, they still owe me money. Money is tight because I was under insured. Dumb, I know but true. I had just received my new policy and thought "Gee, it has been a while since I upped the coverage. I should do that." I will get the house built for the amount I have because of my contacts, unlike many others in my area. Building costs are very high here. I already am requiring all subs to have WC and liablity insurance with me as an additional insured but I am looking for a little more protection than that. I may have to pull in under one of my brothers' licenses and insurance. I had just hoped not have to do that....See Moreproblem with insurance for build
Comments (4)Thanks for the suggestions! I have been working with an independent broker...at the time I posted, he had had no luck, but he has since found a possibility. Now if the universe will stop playing phone tag... I don't believe our regular insurance company will have any problems with homeowner's insurance with the horses once the build is complete, but they contract with another agency for builder's risk/course of construction, and it was this other company that objected to equines of any size. If all else fails, we could board them, but that would be a last resort. As for the companies that objected to the mobile home, I asked if they could just exclude it, but they wouldn't conider that. So, please cross your fingers for us...hopefully we'll clear this hurdle and get on to...the next one....See MoreAppraisal while under contract
Comments (8)If it's being sold "as is" the appraiser will give you an "as is" appraisal meaning he/she will determine value of just what's already appurtenant to the site plus any materials not yet installed but present onsite & included in the sale. As example, maybe there's a stack of drywall in the garage or rolls of electric wire somewhere on site. You may also need an "as complete" appraisal if you're going to finance the finish work. If there are uninstalled materials laying around...be sure to inventory them & take lots of pictures (dated). Uninstalled materials frequently grow legs & walk away in the night! The bank should have secured them but, these days, who knows what they're doing...or not doing to protect the property. Also, ask the lender if the property is currently insured & for how much! This is very important. There are so many foreclosures today I'm uncomfortable saying this doesn't need to be asked. It 'should' be a no-brainer...banks have general liability policies to cover this type of thing but the loan officer in charge does have to remember to notify the insurer of the property's address within 30 days of the foreclosure. I'm completely uncertain that every property is making it onto the proper insurance list today. So...ask & you can sleep easier plus it 'might' trigger the darn loan officer that he/she needs to notify the insurer immediately of the property's existence! Would not be fun to lose the house to fire 3 days before you close...and empty properties are targets for bored teenagers, unfortunately. As "as complete" appraisal is performed for houses as per the plans & specifications. For instance, if you were building from scratch & needed to get an appraisal done for your construction loan. Obviously, there's not yet a physical house to appraise. So, the appraiser uses your plans & specs to ascertain value as if the home was completed. After you have closed the sale & start to finish the house...be sure to obtain your own Builder's Risk insurance policy. It will cover you in case the guy delivering the HVAC trips over his McDonald's cup & breaks his leg. Also, get lien waivers from everybody who provides materials and/or labor. If you have a construction loan your lender will assist with this process. If you'll be finishing the home with cash then it's totally your responsibility to protect yourself. In my portfolio, I built-out probably close to 90% of all houses than came to me unfinished. I GC'd them. I found it much easier to sell a completed house (and sold them for substantially more value to my employer...the bank) than it was to sell a half finished place. I'm a bit surprised they are selling it to you "as is". I guess banks are just so overwhelmed today & don't have the employee skills on staff to get the job done. Many times, I've been assigned the task of building out entire subdivisions...one had 450 unfinished houses! Yikes. It was in Rancho Mirage, CA. The day I first arrived on-site to take over as GC...I found 3' of sand blown into the houses. Oh, what a mess! Took me almost 3 years to get the last house sold but oh what a party the bank threw for me when I closed that last house! lol :) Ya know, you should ask Dave here on the forum about getting an FHA loan that includes funds to finish the construction plus the purchase price. I'm skilled at workouts but permanent financing isn't my 'thing' but Dave will know... /tricia...See Morehoosierbred
10 years agoUser
10 years agoWar_Eagle
10 years agoDLM2000-GW
10 years agoLOTO
10 years agoCamG
10 years agoLE
10 years agoUser
10 years agoLE
10 years agoworthy
10 years agoUser
10 years agoOaktown
10 years agolexma90
10 years agoLE
10 years agoLE
10 years agoLE
8 years agoJamie Clark
8 years agoUser
8 years agosail_away
8 years agoJamie Clark
8 years agoSunny Days
8 years agoRon Natalie
8 years ago
Related Stories
REMODELING GUIDESHow to Remodel Your Relationship While Remodeling Your Home
A new Houzz survey shows how couples cope with stress and make tough choices during building and decorating projects
Full StoryREMODELING GUIDESHow to Protect (Even Enhance!) Your Relationship While Renovating
No home improvement project is worth a broken heart. Keep your togetherness during a remodel with this wise advice
Full StoryWINDOWSPhoto Flip: 85 Window Seats for Whiling Away the Day
Grab a good book and settle in for a spell in one of these amazing window seats
Full StoryREMODELING GUIDESConstruction Timelines: What to Know Before You Build
Learn the details of building schedules to lessen frustration, help your project go smoothly and prevent delays
Full StoryDISASTER PREP & RECOVERYHow to Prep for Disaster Insurance Claims
Tools and tips for making an inventory list, documenting damage to your home, and working with your adjuster
Full StoryWORKING WITH PROSYour Guide to a Smooth-Running Construction Project
Find out how to save time, money and your sanity when building new or remodeling
Full StoryREMODELING GUIDESWhat to Consider Before Starting Construction
Reduce building hassles by learning how to vet general contractors and compare bids
Full StoryLANDSCAPE DESIGN5 Reasons to Consider a Landscape Design-Build Firm for Your Project
Hiring one company to do both design and construction can simplify the process. Here are pros and cons for deciding if it's right for you
Full StoryKNOW YOUR HOUSEStair Design and Construction for a Safe Climb
Learn how math and craft come together for stairs that do their job beautifully
Full StoryBUDGETING YOUR PROJECTDesign Workshop: Is a Phased Construction Project Right for You?
Breaking up your remodel or custom home project has benefits and disadvantages. See if it’s right for you
Full Story
Harbour Risk Management LLC