Family getting their newly built home

Key Considerations for Insuring New House Construction

Updated March 1, 2024 . AmFam Team

Building a new home? Congratulations! It’s an exciting time for your family. Soon you’ll have a new roof over your head and a great place for making memories together.

But before you put the blueprints into action, it’s important to consider how insurance factors into the construction of a new home. After all, you’ll definitely want to protect this dream in progress! Below we outline our best tips on what to keep in mind as you build your new home.

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Do you need home insurance for a new build?

Before you begin building, it's wise to pick up a new home under construction endorsement to assist with the replacement costs of equipment or materials stolen from your site that resulted in a covered loss. And if the basement foundation should collapse due to hydrostatic pressure, you could find yourself underinsured without this key coverage.

What's the difference between home insurance & new home under construction insurance?

New home under construction coverage is key insurance that protects your home and big investments while it’s being built. The coverage is more specific than a standard homeowners policy. Because finding the right insurance during the construction of a home is so important, we recommend that you contact your American Family Insurance agent and go over your plans, construction start dates and coverage options.

Unlike homeowners insurance, new home under construction insurance covers exactly that: the risks that construction materials face when fixtures, uninstalled equipment are on-site or in transit to your home. Even after installation, these expensive items will remain covered under this policy, until you take ownership of the home and the new home construction policy is no longer active.

New house construction

5 Tips for Insuring Construction of Your New Home

Getting a new home built is all about working with your contractors and locking in a design. Next up you’ll work on selecting appliances, lighting fixtures even come to an agreement on pricing. When your agent builds you a quote for your new home under construction insurance, it will be helpful to have a list of these items in hand. Here are a few other considerations to keep in mind when insuring your new home.

Think Insurance First

For many, this is at the bottom of the to-do list, but it’s important you talk to your American Family Insurance agent before your new house construction plans are set in stone. You’ll want to make sure the conditions, location and details of your new home don’t hurt its chances to be insured.

Don’t Rely on Your Contractor’s Coverage

Odds are your builder’s insurance covers their business, not you or your things. Talk to your agent and consider getting a new home construction endorsement right off the bat to ensure you’re protected during the build.

Build Smart, Save Money

At American Family, we reward smart habits. And equipping your home with certain safety devices could qualify you for a discount! Installing smoke and fire alarms, water detection systems, Ring™ Video Doorbell, burglar alarms and more could help you save money. Build smart today, save money later.

Create a Home Inventory Now

You’re starting fresh — what better time to begin your home inventory? Our home inventory tips can help you keep a record of the things that matter most and help you bounce back quickly should the unthinkable ever happen.

Evaluate Your Needs Following Construction and Update Your Policy Accordingly

The end of the building process is near! Now you know more about your new home and the unique protection you might need. Should things change, we’re always happy to help you review your policy.

Insure Your New Home with American Family Insurance

Your home is where your dreams grow, so take these steps towards protecting what matters most early on and enjoy every step of the journey. Contact an American Family agent — we’re always just a click or call away. Happy building!

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

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