Newbie insurance question

folkvictorianNovember 5, 2011

We've just purchased a chunk of land with a 28' x 28' new garage on it. Digging will begin this week for our new home's foundation. What kind of insurance should we have from now until we take possession of the house? The unattached garage has no heat or running water and we'll be using it to store a lot of our stuff until we move into the new house. I'm hesitant to call an insurance agent for advice before I ask you folks. Thanks in advance!

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Todd33

Are you self financing the building of your new house? If you took out a mortgage for the build then your lender will require full home owner insurance as if the house is already built.

    Bookmark   November 5, 2011 at 8:34AM
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kirkhall

Why are you afraid to talk to your agent? They are the best qualified to answer this question--they know their policies and their policies' limitations. If you don't have a good relationship with your agent, get a new one (one who is a broker who works with multiple companies and is local in your area rather than some 800 customer service number).
I found our agent to be very helpful in determining what coverage we needed during our sizable addition to cover our house, as well as materials on site.

    Bookmark   November 5, 2011 at 11:10AM
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booksandpages

As your agent about "Builder's Risk" insurance. Ask your GC what kinds of insurance he carries (workers comp, general liability, etc.) and be sure to get proof of insurance from him and his subs before their work begins.

    Bookmark   November 5, 2011 at 3:36PM
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folkvictorian

We don't have a mortgage. To answer Kirkhall's question, we don't have an agent in the area where the house is being built, and I don't want to be talked into excessive insurance, so I thought I'd see what others have done in this situation. Like I said, we're newbies, so I don't have a clue as to what kind of insurance we need. Thank you for the advice, Booksandp, I'll find out what coverage the builder has, too. Thanks everyone.

    Bookmark   November 5, 2011 at 6:47PM
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dhuston

In my experience it might be hard for you to get insurance on the property. The builders insurance should cover most things like theft or the house burning if they have builders risk. If they don't make them get it. It prob won't cover theft of anything stored in the garage if it is yours and not bought by the builder. You could probably get some type of home owners ins on the garage though which should cover your property. Your builders general liability and workers comp will cover anyone getting hurt.

I had a hard time getting those coverages since mine is owner/builder. Nobody wants to insure that!

    Bookmark   November 6, 2011 at 12:30AM
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folkvictorian

Thanks, Dhuston, I'm waiting to hear back from my builder as to what they cover. I talked to one agent today who said no one will cover just a garage; they'd need to tie it in to our current homeowner's policy instead of insuring it on its own. Sorry to hear you had trouble getting insurance; I hope it gets easier!

    Bookmark   November 7, 2011 at 2:33PM
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