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Dwelling Under Construction Endorsement

A dwelling under construction endorsement is additional coverage that can be added to your homeowner’s policy. It provides cover for home construction that isn’t expected to last longer than two months.

While homeowner’s insurance protects your belongings and home from losses stemming from storms to theft, the addon provides security over home remodels.

Though covers limited for new homes or renovated areas, it offers coverage over theft of building materials and personal belongings.

If you add this endorsement to your plan, your insurance company may raise your insurance premium because the probability of thievery or vandalism may increase.

Want to know further?

Take a deep dive into how insurance companies record the premiums that you pay. Check out Earned Premium.

Dwelling Under Construction Endorsement: What’s Covered

This type of coverage helps to protect your home, when it’s under construction, against things such as storm damages, burst pipes, fires, and theft, although this is not an extensive list. (similar to Builders risk form)

The policy includes different cover than those listed above, protecting unique shortfalls during constructions processes.

Soft Cost

Soft costs consist of: interest on the work loan, licensing and permit fees, and any other cost that arises from the project’s postponement.

Premises Liability

If a guest is injured throughout the construction work, premise liability will cover any medical or legal expenses caused by the incident.

Building Materials and Supplies

Any tools or building materials that are used for construction at the covered house, including material or equipment stored at temporary locations.

Remember: To guarantee cover, a licensed builder must complete the construction work; otherwise, any claims may be rejected.

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