Your property is protected by your homeowners insurance while you occupy it, but what about while you’re building it or adding onto it? If you think your general contractor’s insurance will cover you, think again. A general contractor is usually only required to carry liability insurance for losses due to their own negligence. Your homeowners insurance typically doesn’t cover pre-construction and buildings under construction.
So how are you supposed to protect your property while it’s in the process of being built or remodeled? To do that, during the construction phase, you need builder’s risk insurance.