New Construction Insurance

Protection for newly built homes during and after construction.

Typical cost: $800 – $2,500+ per year

New Construction Insurance

New construction insurance covers homes during the building process and immediately after. Builders typically carry coverage during construction, but homeowners should understand when their policy needs to begin and what unique considerations apply to new homes.

During Construction

Builders carry builder's risk insurance during construction. Verify your builder has adequate coverage and you're listed as additional insured. As the owner, you may need to provide homeowners coverage once construction reaches a certain completion percentage or at closing.

New Home Advantages

New homes often qualify for insurance discounts due to modern building codes, new electrical and plumbing, and updated safety features. However, rebuild costs may exceed purchase price, so ensure dwelling coverage reflects true replacement cost.

What's covered

Dwelling Coverage

Covers the newly constructed home at replacement cost value.

Building Code Upgrades

Covers rebuilding to current codes (though less relevant for new construction).

Personal Property

Protects belongings as you furnish the new home.

Liability Coverage

Covers injury claims from visitors to your new property.

Builder Warranty

Coordinates with your builder's warranty for defects.

Tips

  • Coordinate coverage transition with your builder's policy
  • Get dwelling coverage based on rebuild cost, not purchase price
  • Take advantage of new home discounts from insurers
  • Document upgrades and customizations for accurate coverage
  • Review builder warranty to understand what's covered

Other home insurance types

Stay informed

Weekly insurance tips and coverage insights. No spam.