BUILDER INSURANCE—EVER WONDERED WHO COVERS THE MISHAPS?
I get where you’re coming from, but I think it’s a bit more complicated than just “the builder should cover everything.” When we did our reno last year, I assumed the same thing—figured the builder’s insurance would handle any accidents or theft. Turns out, their policy only covered certain things, and there were all these exclusions buried in the fine print. Like, if my own stuff got damaged or stolen (tools I left on site, for example), that was on me unless I had my own coverage.
It does feel like a racket sometimes, but I guess part of it is about who actually owns what during the build. The builder’s responsible for their materials and workers, but once something’s installed or delivered to your property, it gets murky. Our insurance broker explained that if a storm hit and damaged the half-built extension, we’d be in a weird limbo unless we had extra coverage. Not saying it’s fair, just that the lines aren’t as clear as they probably should be.
Honestly, I wish it was more straightforward. You’d think if you’re paying someone to manage the whole project, they’d take on all the risk. But then you hear horror stories about builders going bust halfway through and suddenly you’re left holding the bag for unfinished work and missing materials. Maybe that’s why insurers push homeowners to get their own policies—to cover those gaps when things go sideways.
I do agree it feels like we’re nickel-and-dimed at every turn. But after seeing a neighbor lose out big time when their builder’s insurance didn’t pay up after a fire, I’m kind of glad we had our own backup. Still doesn’t make it any less frustrating to fork out for something you hope you’ll never need...
I get what you mean about the fine print—been there, read that headache. The part that always gets me is how “ownership” shifts mid-project.
That’s exactly the trap. When we built our place, I was shocked that once the marble got delivered (before install!), it was technically my problem if anything happened. Feels like a loophole.the builder’s responsible for their materials and workers, but once something’s installed or delivered to your property, it gets murky.
Here’s what I keep coming back to: if you’re investing hundreds of thousands (or more) into a dream home, why isn’t there a single, comprehensive policy that just covers everything until handover? Is it really so hard for insurers to create something less piecemeal? Or is this just another way the industry keeps us on our toes—and on the hook?
