Return to the Building a Home Forum | Post a Follow-Up

 o
Course of Construction loan ?'s

Posted by melaska (My Page) on
Sat, Jun 2, 12 at 20:50

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.


Follow-Up Postings:

 o
RE: Course of Construction Insurance ?'s

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


 o
RE: Course of Construction loan ?'s

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?


 o
RE: Course of Construction loan ?'s

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! :)


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Building a Home Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here