Protect your investment from day one.
Check out our guide below!
Questions? Reach out to one of our knowledgeable insurance agents. We’re eager to set you up with the right coverage and rate!
Buying a newly built home is an exciting milestone. You’re getting a brand-new space with no prior damage, modern upgrades, and fewer repairs to worry about. But before you close, there’s one area that often gets overlooked: insurance.
Most buyers assume that their builder or lender is handling everything. In reality, understanding what’s covered, and what’s not, can help you avoid gaps in protection, save money, and protect your investment long-term.
Here are five key questions to ask your builder before you close on your new construction home:
1. What does my home warranty cover and for how long?
Most builders offer a home warranty that covers workmanship and materials (usually 1 year), systems like HVAC and plumbing (2 years), and structural components (up to 10 years). But not all warranties are the same.
Ask your builder for a copy of the warranty policy and clarify:
- What’s covered and what isn’t
- Whether appliances are included
- How to file a claim if something goes wrong
Understanding your warranty helps you avoid duplicating coverage in your homeowner’s insurance policy, saving you money.
2. Do you carry builder’s risk insurance and when does it end?
A builder’s risk insurance protects the home while it’s under construction, not after. It typically covers:
- Fire
- Theft of materials
- Vandalism
- Weather-related damage
But this coverage doesn’t protect your personal belongings or liability. And most importantly, it ends once:
- Construction is complete
- You close on the home
- Or the certificate of occupancy is issued
Ask your builder for the exact end date so you can activate your homeowner’s insurance without any coverage gap.
3. Have there been any insurance claims during construction?
This question may not come up often, but it’s a smart one. If there were any claims (e.g., flooding, fire, theft), you’ll want to know:
- What happened
- Whether repairs were made
- If it could impact your future insurance rate
Your builder might not be required to disclose this but asking builds trust and transparency and gives your insurance agent a more complete picture.
4. Are there any high-end upgrades or features I should let my insurance agent know about?
Not all features are automatically covered under a standard homeowner’s policy. If your builder included:
- Smart home systems
- Solar panels
- Upgraded finishes or flooring
- Detached structures like sheds or casitas
- Pools or extended patios
Your insurance coverage may need to reflect those items. Ask your builder for a list of all upgrades and custom features so your agent can accurately determine your home’s replacement value.
Too little coverage means you could pay out of pocket after a claim. Too much coverage and you’re overpaying on your premium. A detailed list helps you strike the right balance.
5. Do you have a recommended insurance provider or local contact?
Some builders work with trusted insurance agencies who are familiar with their process, timelines, and warranty structure.
Even if they don’t have a preferred partner, they might still recommend a local agency that understands new buildings in your area.
Asking these five questions helps you:
- Avoid coverage gaps between builder and buyer
- Understand what your policy should (and shouldn’t) cover
- Make informed decisions about protection and pricing
- Know who to call if something goes wrong
- Buying a new home is a big investment, make sure it’s protected from day one.
At Cornerstone Insurance Agency LLC, we work with new construction buyers every day. We know the questions to ask, the coverages to consider, and how to coordinate with your lender or builder to make the process smooth.