A new construction home seems perfect, in theory. However, anything can happen, and as a result, you need to ensure your new build is insured. Whether you are considering the idea of building a home or you are already immersed in the process, discover more about protecting your new home with homeowners' insurance.

Review Your Specific Plans

Look over your specific plans to determine what type of insurance you need for your new home. If you have partnered with a general contractor and they are performing the entire build from start to finish, you do not need to worry about insurance until you take possession of the home. However, if you are managing the build, you need to invest in a builder's risk policy. A risk policy covers the home during the building process in the event of damage, such as from theft or harsh weather. 

Costs Could Be Lower

One advantage you can look forward to is the potential for lower costs relative to the value of your policy. For example, consider two homes valued at $500k, one home is brand new and the other is 15 years old. In theory, it is easy to surmise that the newer home is likely in better condition than the older home, which will give it a lower risk factor. Since insurance companies generally assess premiums based on the risk, the lower risk could mean lower costs. 

Start the Process Early

Do not wait until a few days before you plan to head to the closing table to start looking at insurance. Once the builder notifies you of the determined closing date, you should begin the process. Traditionally, this date is provided somewhere between 45 and 60 days in advance, so as soon as you collect this information, you should begin the shopping process. 

Incorporate Safe Features

Use the control you have in the build process to help lower your homeowners' insurance. One great way to go about this process is to incorporate safe features, such as water leak detection alarms, enhanced smoke alarms, and a smart home security system. These smart features make your home safer, which in turn lowers the risk of a mishap with your home, which will ultimately lower your insurance costs. You can speak with the builder about adding these features. 

If you have specific questions about insuring a new construction home, it is always best to speak directly with an insurance professional. A professional will be more than happy to sit down and discuss all your needs.