Hey everyone,
I've sent away for a septic permit application and I've decided on building a 20x36, 2 story + attic cottage. ;D I'll be working on getting the necessary approvals over the next two months but I have a couple of questions about insurance.
I've been wondering recently if there is a difference in the premiums and coverage available on houses that were built by the owners? I'm not very knowledgeable in this area but I have heard that a woodstove will raise your insurance premiums but a fireplace will not. Does this logic extend to owner built vs. developer built? What about Pier and Beam vs. Crawlsapce or full foundation?
I'd love to hear what other people's experiences have been and whether you would have done something differently if you'd know about the various insurance quirks.
Thanks,
Kodakjello
I know insurers prefer enclosed foundations, i.e. continuous footer with either crawlspace or basement. They don't like pier and post.
I don't think they have anything against owner-built provided all building codes are followed and all required permits and inspections are done.
It is hard to get insurance for owner/built if you have already broke ground.
Because I had my posts and beams already up My insurance company would not cover me.
Allstate, My insurance company of many,many years told me to ask for coverage from them after the interior walls were sealed. Hiding the wiring and plumbing.
They did give me the numbers to a couple of fly by night insurance companys that would cover me during construction. Most of them wanted to do a 3-6 month policy only.
We're getting whats called Builder's Risk insurance. I'm not sure what the rates are though. When I asked our agent about the woodstove she said it doesn't make a difference. Might be different depending on where you live though.
Thanks for the info guys,
I'll make sure I get insurance before I break ground, I'd hate to be left high and dry during the process :o I'm staring to think that it might be worth the extra expense to build a crawlspace and ship in some fill, rather than go with a pier and beam foundation. Especially if it is going to cost me more than the difference, in higher insurance premiums for the life of the house.
Oh yeah, is insurance less on a second/seasonal residence?
So many things to consider...I just want to get building ;)
Our agent (SF) quoted us $379.00 for builders risk for one year.
Another quoted $359.00
Ah, ok! so the insurance is called "Builder's Risk" insurance. This gives me a good place to start. It's kinda strange, my estimates so far haven't included insurance, permits, or inspections but I'm now starting to think that they might become a large part of the cost :( .
Thanks!
We have a company here in Texas called Germania.
I'm not sure what other states they can write policies for but they seemed to have the best deal overall.
DH is thinking this is the company that we will go to for Builders Risk Insurance.
Jackie
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Oh yeah, is insurance less on a second/seasonal residence?
Don't count on it.... another thing insurers don't like is an unoccupied dwelling. Risks of undetected freezing pipes or water damage, increased risk of vandalism, etc. It might help if there is a neighbor or caretaker who can keep an eye on the place when you're not there.
Pioneer gal, Jimmy or anyone who knows, what exactly does the Builder's Risk cover? Just damage to the structure, or liability for worker's injuries, or?
I did a quick google for builder's risk and got these things. I am going to drop by our agent tomorrow so maybe I'll have more info for you then.
Coverage for theft of materials from the moment they're delivered to the job site.
Protection for materials in-transit and at temporary locations.
Coverage for materials that are installed or uninstalled.
Coverage for losses due to ordinances or laws.
Fire Department Service Charges
Errors and Omissions coverage.
Flood & Earthquake coverage optional.
Thanks Mommem. Sounds ok for $350 or so a year. Presumably any subcontractors would carry their own insurance and the owner/builder should get their own falling off the ladder coverage.