Holman Insurance Brokers Ltd. specializes in providing Insurance coverage for homes that are under construction and Residential Builder's Risk policies.

It is important that coverage is placed as soon as you start working on the property, regardless of whether the foundation or framing has started, due to the liability exposure.

The cost of insurance is dependent on the presence or absence of fire protection, whether property owner or General Contractor builds the home, the completed value of the home, the coverage selected and length of time for completion of construction.

Builder's Risk policy covers an entire building or other structure during the course of construction, including the building supplies and materials that will become part of the covered structure. The entity insured is usually the owner or the builder or perhaps both.

Holman Insurance Brokers Ltd. understands the issues and works with a number of insurance companies to provide insurance at reasonable premiums for homes under construction and also with builders and contractors who build these homes. Either way we are able to provide a solution.

Properties under construction we insure

Residential homes
Rental homes
Townhouses
Row house Duplexes, triplexes and quads

Insuring a home while it is under construction or being built

Typically there are a few ways to build a home

i) A general contractor or builder is hired to build the house and handle the entire process. In this case, the builder/contractor owns the land and is building the house. There isn't anything needed on the insurance side from the homeowner side. Nothing would be in the homeowner's name at this point so liability would fall completely on the contractor if something were to happen to the house or on the property.

ii) If the homeowner owns the land and a contractor or builder is building the house. The homeowner needs to obtain liability coverage to protect his or her assets in case a third party gets injured on the property. Standard contractors insurance isn't going to cover the property owner. The homeowner also needs to make sure the contractor has current, proper and sufficient insurance coverage to begin work. The homeowner should request the contractor to name him/her as an "additional insured" on the contractor's policy. By doing so, an extra layer of protection is provided to the homeowner. If the homeowner gets sued, the builder's policy would respond along with any policy the homeowner purchases on his/her own. In this case the Contractor/Builders purchases a Builders risk policy. These policies protects your home while under construction against Builders Risk Broad Form perils including Fire, Lightning, Windstorm, Smoke, Water Damage, Vandalism, Glass Breakage and Theft of Building Materials. This policy covers the dwelling while under construction and the building materials, while on site or installed in the home, for theft. A standard homeowner's policy would exclude the theft of these materials. For example, if the owners have kitchen cabinets in the garage of the house waiting to be installed and over night they're stolen, the builder's risk will provide coverage for these, a homeowner's policy would not. Make sure this coverage is in force in the builder's name or owner's name prior to building.

The coverage can be purchased for a minimum of 4 months and a maximum of 12. Extensions are available if you take a shorter term than 12 months and a delay occurs.

Upon completion and occupancy of your new home, Holman Insurance Brokers Ltd. is also able to provide the appropriate Homeowners policy.

To find out how we can look after all your insurance needs, or have one of insurance professionals tailor a comprehensive and cost-effective insurance solution, call 905-886-5630 or 1-800-567-1279 and ask for our Special Risk Property department.