New Construction Coverage Checklist
Before and after closing on a new build. After the 2021 Marshall Fire, a CU Boulder–led study found 74% of affected policyholders were underinsured. The fix is cheapest in month one.
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Before closing
- Rebuild cost, not purchase price. Ask how your dwelling limit was calculated. Purchase price includes land, market, and builder margin. Rebuild cost is materials and labor today.
- Extended replacement cost. Ask for an endorsement that pays above your limit if rebuilding costs run over.
- Start date. Your homeowners policy must be in force on closing day. The builder's coverage during construction doesn't carry over to you.
- Warranty is not insurance. The builder's warranty covers workmanship defects. Insurance covers sudden losses like hail, fire, and theft. You need both.
- Wind/hail deductible. Flat dollar amount or a percentage? Know the number.
- Water backup. Usually excluded unless you add it. It matters with a finished basement.
First 30 days after move-in
- Add what you add. Finishing the basement, a fence, a deck, landscaping, sprinklers, or solar can raise rebuild cost. Update your coverage when you add them.
- Home inventory. Walk every room, closet, and the garage with your phone camera. Save it to the cloud.
- Garaging address. Update your auto policy to the new address.
Three questions about the mortgage
- If your income stopped tomorrow, how many months could your family make the mortgage payment?
- Does your life insurance, including anything through work, cover the mortgage balance?
- Would that coverage continue if you changed jobs?
Send me your dec page and closing date, and I'll check it against this list in 10 minutes.