• Emily Maushardt

How to protect yourself while building.

One of the biggest concerns for us not financing our build and having all of our cash upfront, is a major catastrophic event or property theft during our project. What if a wild fire came through and devastated our home build that we dumped all our savings into? What if someone decided to help themselves to all our tools or material on the job site? These are all very important scenarios that happen often and shouldn't be taken lightly.

So how can you protect yourself and your investment while building? The number one most crucial item is insurance. Because there is no home to insure while building, you need what is referred to as a Course of Construction policy (also referred to as a COC policy or builders risk policy). It covers the property value of the project while under construction. Once you are done building, it can easily be transferred to a homeowners policy. Obtaining a COC is as simple as finding a local Property and Casualty agent in your area. After reviewing the scope of your project with high level specifics, such as finishes and square footage, he/she can produce an average cost of loss if something were to happen.

Secondly, because we know how common worksite theft is, living on property was very important to us. Not only is it convenient so we aren’t driving so much to the property, but we are always around to lessen the likelihood of someone coming by to take what isn’t theirs. If you are building or thinking of building and can’t live on site, surveillance cameras are also a great investment. Much more budget friendly game or trail cameras are also available so you can have surveillance on your site. Worst case scenario, you’ll have picture and video of unwelcome visitors if something were to happen to assist with insurance claims and the local police department.

Costs of a COC policy and cameras are minor compared to other costs associated with building. This is something you can easily build into the budget from the beginning to protect yourself and your investment.

Do you have other build related questions or topics you want me to discuss? Make sure to let me know.


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