need advice for builders risk insurance

[joaniebalonie]

any suggestions on a particular company? or advice? a local insurance guy is getting us a quote but i see some on-line options. he asked what the appraisal amount was, not the amount we're borrowing. we're building the house ourselves so our loan isn't near as much as the appraisal (it's the bank that requires it so i thought they'd just care about our loan). i wouldn't think the completed value would be a factor until it's mostly finished. but i don't know anything about this stuff...that's why i'm asking YOU!

[stanb999]

Thats a good insurance man. He whats to make sure you are covered at all phases of construction. You will of course only be paid for what ever gets damaged "god forbid". But you need to be covered.

[joaniebalonie]

hi, well is there a premium type thing for builders risk like regular insurance? we're borrowing what it will cost us to build the house but will the agent base the cost of the insurance on the finished product even though we've only put in (at this point) materials? of course we'll insure for replacement later as we get farther along but will we get socked for that up front?

[Alice In TX/MO]

We got ours from the Farm Bureau.

[joaniebalonie]

thanks for the idea. i'll definately call them!

[VALENT]

builder's risk is based on the final value of the project. There is a set premium for the duration up to 1 year. Building yourself, you would not have to include profit in the equation.

[Ramblin Wreck]

I got my builder's risk from State Farm, and they converted the unused premium to homeowner's coverage when I was done with the house. Since I was the owner/builder/framer/roofer/landscaper/chief cook and bottle washer, it took a couple of years to build it. They seemed OK with the timing, just calling every so often to check on progress. Keep good records of your incurred costs. That may be need in the unfortunate event a claim has to be filed. Good luck on your building project.

[joaniebalonie]

thanks for the responses. we're 'wearing all the hats' too, so we won't get it done anytime soon. just hope we don't have too bad of a winter. not the best timing for starting a house, eh? oh well.