skip to main content

Building a Home

Builders Risk and Premise Liability Insurance..

9 years ago

Just wanted to reach out to others building their homes and see what kind of figures you were seeing for Builders Risk Insurance as well as Premise Liability Insurance... I just quoted this out through two different brokers.. We are using a custom home builder for the building of the home..

Broker A:
- Builder Risk Insurance:
- 12 month plan - 550,000 coverage - 2,500 deductible - $5,442 (5,967 with 500k premise liability)
- 9 month plan - same coverage / deductible - $4,170 (4,669 with 500k premise liability)

Broker B:
- Builder Risk Insurance
- 12 month plan - 500,000 coverage - 4,800
- 6 month plan - 500k coverage - 2,640

Just wanted to see if these figures are in line with what others are seeing.. This is for the construction of a single family home with 2,832 square feet in New Jersey... This is also complete coverage to include any thefts, fire, weather, etc..

This post was edited by Jason143NBPD on Thu, Nov 13, 14 at 20:07

Sort by:Oldest

Comments (7)

Kathy Harrington
9 years ago
That seems high. We have a builders risk policy 12 month 1.7 with 5000 deductible for $3234. We got ours through Zurich It is written in our name and has our builder listed as additional insured. It was issued for a home in Colorado approximately 4700 sq ft
njbuilding143
Original Author
9 years ago
Thanks for the feedback.. I am going to assume that I will be looking at a rate hike just because of the area... But perhaps I went too low with the deductible.. I will have to see what the lender requires.. I had them do the lowest deductible which was 2,500.. Perhaps going up to 5k will lower the overall rate..
Related Discussions
Builder's Risk Insurance
Q
Comments (5)
We had builder's risk insurance and my agent said they (Allstate) would only insure us for one year under "builder's risk" and then we could switch to homeowners when the house was inhabited. Unfortunately it has taken us more than 3 years to complete this house so we only had the insurance for the period when the really heavy work was being completed, i.e, pilings be put in ground. The only reason we acquired the insurance than was for any damage that occurred to the neighbor's foundation as a result of the "banging." However, the company was very conscientious and came out with a meter to ensure the vibration wasn't traveling to the neighbor's property. A few months ago that same neighbor approached my DH and wanted to knwo who did the pilings as she had a crack in the side of the house and thought it was a result of the pile driving. My husband took one look at the crack and could see it was a result of her house "settling." He told her that and sure enough a few weeks later she came back to apologize and tell us she learned the crack was due to settling!! Most people who are building on this forum appear to be out in the middle of no where so you are lucky not to have to deal with neighbor's in close proximity.
...See More
Need your referrals for Builders Risk Insurance
Q
Comments (3)
We went with Allstate - they offered a policy that is effectively your homeowners and acts as Builder Risk during construction and then converts - comes with $500K liability - for our $800K build the cost was under $900 - it insures for all loss once the materials are installed - the builders insurance covers us if the materials are on site yet not installed
...See More
Builder's Risk Insurance - Homeowner vs GC?
Q
Comments (8)
We are the owner/builders for our construction. Our GC has a million dollar policy of his own. We had quite a time trying to find a policy since we are building out of pocket so that really limited our search. I suggest going to a company that deals with a multitude of insurance companies. The State Farm policy we considered would only last for a year and we didn't think we'd be done by then. Our agent finally found a company (Zurich) that would renew for another year and the premium was fairly inexpensive. Make sure you have all the extra riders you'll need. Since we live in earthquake country (Alaska - and our town was destroyed in the '64 quake). Thank goodness this company offered an earthquake rider. The deductible is quite large but worth it.
...See More
Course of Construction Insurance for owner/builder
Q
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 More
NChomegirl
9 years ago
We just got ours in NC. Coverage for $417k 12 mo one time premium $1500 with $1000 deductible. Through Zurich.
njbuilding143
Original Author
9 years ago
Thanks for the input.. I just contacted Zurich and got an amazing quote.. 1400 for full coverage with 1k deductible.. But I noticed they did not offer premise liability.. I know the builder must carry his own liability insurance but even in the contract he specifically puts "liability insurance deemed necessary for his own protection".. With that I would think I should probably get some kind of liability coverage just in case something should happen on the property.. At least until we can get a homeowners policy.. The problem is that most of the insurance sites only list businesses for general liability.. I don't see any for personal protection.. Did you guys also purchase separate liability insurance or did you strictly go with builder's risk?
abs9940
9 years ago
Hi Jason -
I'm working on securing builders Risk in NJ (Westfield). I'm expecting to receive quotes this week. I'll be happy to share with you once i receive them.
runhrdr
9 years ago
Hi Jason - we are also getting ready to start construction and have some builder's risk quotes with Zurich through our current homeowner's insurance broker. He was saying we also needed premise liability insurance, but none of the other broker's quotes mentioned this. I also thought that liability insurance was just handled through the general contractor. What did you end up doing?
chellefnp
9 years ago
We are in Missouri and got a Zurich policy with a $2500 deductible for only $547. We are going to be our own GC, and my agent recommended checking our current homeowner's policy regarding the premise liability--most major insurers use the same boilerplate language which reads that an insured location includes:

"land owned by or rented to an insured on which a one or two family dwelling is being constructed as a residence for an insured"

Related Stories

MOVING Hiring a Home Inspector? Ask These 10 Questions

By Christine Tusher

How to make sure the pro who performs your home inspection is properly qualified and insured, so you can protect your big investment

WORKING WITH PROS How Long Is Your Contractor on the Hook?

By Erin Carlyle

Understand how a warranty protects homeowners from shoddy work — and builders from being liable for their work for forever and a day

WORKING WITH PROS 9 Questions to Ask a Home Remodeler Before You Meet

By Ventana Construction LLC

Save time and effort by ruling out deal breakers with your contractor before an in-person session

WORKING WITH PROS 10 Questions to Ask Potential Contractors

By Ventana Construction LLC

Ensure the right fit by interviewing general contractors about topics that go beyond the basics

MOST POPULAR What to Do After a Hurricane or Flood

By Bud Dietrich, AIA

How you treat your home after a natural disaster can make all the difference in its future livability — and your own personal safety

CONTRACTOR TIPS What to Look for in a Contractor's Contract

By Buckminster Green LLC

10 basic ingredients for a contract will help pave the way to remodel happiness

REMODELING GUIDES Contractor Fees, Demystified

By Ventana Construction LLC

Learn what a contractor’s markups cover — and why they’re worth it

CONTRACTOR TIPS 10 Things to Discuss With Your Contractor Before Work Starts

By Ventana Construction LLC

Have a meeting a week before hammers and shovels fly to make sure everyone’s on the same page

REMODELING GUIDES Contractor's Tips: 10 Things Your Contractor Might Not Tell You

By Buckminster Green LLC

Climbing through your closets and fielding design issues galore, your contractor might stay mum. Here's what you're missing

BUDGETING YOUR PROJECT Construction Contracts: What to Know About Estimates vs. Bids

By Ventana Construction LLC

Understanding how contractors bill for services can help you keep costs down and your project on track

Sponsored

RTS Home Solutions

3 Reviews

BIA of Central Ohio Award Winning Contractor

More Discussions

Need Help Reviewing Floor Plan!

53

House plan and foundation

13

Hardie Board Discoloration

11

New Build floors

1

Foundation house plan

14