Course of Construction loan ?'s

melaskaJune 2, 2012

Hi everyone...we are finally getting ready to start our build. The foundation was up last Fall & insulation & Bituthane was delivered today.

It's been a real eye opener during my course-of-construction insurance research. Since we aren't going through a bank it's much harder to find what we want.

It's boiled down to two options at this point:

Option A. With State Farm, full coverage, materials during transport, storage on property, and an earthquake rider. Caveat: Only insure for a year...iffy for renewal...they don't like long & drawn-out builds.

Option B. Zurich. No insurance during transport or storing on property & no insurance riders. We live in an earthquake zone so that feature is very desirable. (Old Valdez was destroyed in the '64 earthquake). BUT, they will renew if not completed within a year. We do have a locked 40-ft connex that we can store materials in. We live on the property so someone will be here 24/7 most of the time.

We're not sure if we'll be able to completely finish within a year. I'd hate to have that hanging over my head. But, I'd also hate to have a 9.2 magnum earthquake hanging, too!

Is it possible to insure with both companies? I couldn't find anything on the net.

Thanks for any help.

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melaska

Oops...wrong word in title...sorry. Don't know how to make it a permanent change.

    Bookmark   June 2, 2012 at 8:51PM
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kirkhall

Generally, I'd not want to insure with both...it complicates any claims--they will fight over who will be paying.

Can you start with one, aim to complete within one year, but if you don't make it, at least have a livable area in one year, so that you can just get house insurance and complete it as an extension of your home insurance? Is that an option?

    Bookmark   June 2, 2012 at 9:32PM
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melaska

I asked the agent at State Farm & she said we have to completely finished in order to transfer to a regular policy.

We'd like to at least get it to the point of just having interior things left to do before the snow hits. We'll contract certain inside elements. I'll be ready for the Old Folk's Home by the time I move in! :)

    Bookmark   June 2, 2012 at 9:53PM
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