Insurance Requirements

Owner-Builder loans require you to have Builder's Risk (sometime's called "Course of Construction") insurance while building.

Some programs will also require you to have personal liabilty in addition to the course of construction coverage. Typically the amount of coverage you need will depend on the appraiser's estimated replacement cost.

Typically, you can find a new homeowner's policy with a "course of construction" clause or rider attached for the time you are building.

If your land is in a flood zone, you will also need flood insurance prior to closing.

In all instances, once the home is complete you will need a regular homeowner's policy. Typically, your Course of Construction policy will automatically convert to a regular homeowner's policy for you.

Start with Requesting More Information in order to speak with a representative.