What type of insurance coverage should a Home Owner Builder consider?

• A. General liability insurance for on-site activities, builder's risk (frame-through-completion), and sometimes owner-builder liability coverage; verify requirements with the insurer and authority.
• B. Insurance is not required for Home Owner Builder projects.
• C. Only health insurance is necessary.
• D. Auto insurance provides all necessary coverage.

Answer: (A)

The main idea is that a Home Owner Builder needs a combination of coverages that address construction-specific risks, not just what a typical homeowner policy provides. General liability insurance protects against third-party injuries and property damage that can occur on the site, such as a visitor slipping or a neighbor’s property being damaged by construction activities. Builder’s risk insurance covers the structure and materials while they’re under construction, guarding the project from perils like fire, weather damage, theft, or vandalism from framing through completion. Sometimes an owner-builder liability coverage is needed to fill gaps that a standard homeowner policy may not cover when you’re acting as the builder, since insurer forms and local rules can vary. Because requirements can differ by insurer and by jurisdiction, it’s important to verify exactly what is needed with your insurer and the local authority, and obtain the appropriate certificates where required.

Other options don’t fit because insurance isn’t optional for a construction project, health insurance alone doesn’t address property or liability risks on site, and auto insurance doesn’t provide protection for construction-related liability or the building itself.