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How To Get Home Insurance On A New Build In Manitoba

Man in a hardhat building a new home
February 13, 2023


Building a new home is exciting! It means you can make fun decisions, like if you want an open or closed concept, and avoid weird layouts or neon orange walls. However, it also means navigating some of those not-so-fun tasks, such as determining how to get property insurance on your new build.

Exactly how you get property insurance on your new build will depend on what type of property insurance you need.

In some cases, your contractor may hold enough insurance to cover the construction phase. In other cases, you may need to get a few different policies to ensure your property (and investment!) are protected.

We believe the best (and easiest!) way to get the right insurance coverage is by working with an insurance broker. They’ll not only help you determine what coverage you may and may not need, but they’ll also help you find the best premium!

Want to avoid the reading and jump right to speaking with an Insurance Consultant? Contact us today!

Jump Straight To The Info You Need Most!

What Type Of Insurance Do You Need For A New Build?

There are a lot of factors that go into determining what type and how much insurance you need on a new build, such as:

  • Are you building on land you already own?
  • Are you building the house yourself?
  • Are you hiring a contractor?
  • And, If you’re hiring someone, what type of insurance do they have?

Although we can’t say for sure what coverage makes the most sense for your specific situation, some policies you may want to consider as you get ready to break ground are builder’s risk insurance, commercial general liability insurance, and a standard home insurance policy.

Builder’s Risk Insurance

Builder’s risk insurance protects homes under construction or undergoing a serious renovation project. This type of coverage offers protection against theft and vandalism and can also cover the tools and materials used to build.

Covered perils will vary from policy to policy, but most builder’s risk policies cover damages or loss resulting from the following:

  • Explosion or fire
  • Hail
  • Lightning
  • Theft
  • Vandalism
  • Vehicle or aircraft collision

For example, if your contractor drops off a load of expensive lumber and it’s stolen, your builder’s risk policy will cover the loss.

It’s worth noting that construction materials are only covered while they are on site.

Commercial General Liability

We recommend that every home construction project is covered with Commercial General Liability Insurance.

A Commercial General Liability policy protects you against any damage or injury that occurs while on site. If you have contracted out a third party to complete your new build project, there’s a good chance they already offer this type of coverage. However, if you are completing the new build project yourself, you’ll need to work with an insurance consultant to get your own policy.

It’s important that you always use licensed trades professionals when completing any project and always ask what type of coverage they offer. If you’re unsure if it’s enough– get in touch! We’re happy to chat through your project and ensure you’re covered from all angles in case something were to go wrong.

Home Insurance Policy

If you already own the lot your home is being built on, you’ll most likely need to buy a homeowners insurance policy before the first shovel hits the ground. This is especially true if you plan to live in the house before construction is complete.

When getting your homeowner’s insurance policy, make sure that you opt-in for the following:

  • Homeowners Package (preferred rating) in the name of the homeowner
  • Home policy insured to 100% of the replacement value of the expected completed dwelling
  • Minimum $1,000 Deductible
  • Permission to complete the construction
  • Endorsement 0141 Dwelling Under Construction Endorsement is added*

The policy’s Comprehensive Personal Liability coverage will extend to construction hazards for all subcontractors. Plus, the building materials used for the construction of the house will be insured while on site.

*This additional coverage added to your homeowner’s policy will help cover your construction project. Once the project has been completed and the dwelling is now occupied– your insurance company must be notified.

When Should You Get Insurance on Your New Build?

Similar to how you need auto insurance before driving your vehicle for the first time, you need coverage on your new build before you start construction (before the foundation is poured and/or framing even begins).

Regardless of whether you own a lot and are thinking of building on it, plan to buy a lot to build a custom home, or even if you plan to buy a home from a major builder– we recommend you contact an insurance brokerage before any building takes place.

An insurance brokerage (like us) will help identify any insurance gaps you may have and be able to confirm whether or not additional coverage is needed. So if a building project is on your radar this year– get in touch!

How Much Is Insurance on A New Build?

The cost of your insurance policy will vary on:

  • The size of home
  • The structure of your home
  • The coverage you need
  • If you have additional structures on your property
  • House features
  • Insurance history… etc.

The best way to know how much your specific policy will cost is to– get a home insurance quote.

Do You Need Insurance While Your House Is Being Built?

Much like any construction project, a lot can go wrong. Injuries, theft, damage, and fire are a few things that can easily happen while your project is underway. Not only could these extend the length of your project, but without proper protection, they could lead to some very expensive bills.

In some cases, you may not need additional coverage as your contractor may already hold the necessary insurance protection. However, never assume this is the case. Always ask to make sure you know what is and isn’t covered.

Remember, even if additional coverage is not needed during the construction, you’ll need a property insurance policy to cover you as soon as construction is complete. Make sure to give yourself a bit of time to shop around and find a policy that best meets your needs.

Where Should You Buy Your Home Insurance Policy From?

When it comes to getting a home insurance policy, there isn’t one option. We may be slightly biased, but we think the best thing you can do for yourself and your wallet is to go through an insurance brokerage (like ours!).

There are tons of other advantages to using an insurance broker, such as:

  • Brokers have access to many products through different insurance companies.
  • Their primary objective is to get you, the client, the best product and price to meet your unique needs.
  • A broker will do all of the work for you, including advocating on your behalf.
  • Your broker will help you with quotations and claims.
  • Brokers have extensive experience working with different insurance companies. They’ll be able to give your business to the company that best suits your needs.

Plus, they’ll be able to help you navigate what insurance you may not need based on what coverage your contractor already carries. Not to mention they’ll be able to recommend other insurance you probably never considered that could end up saving you a lot of $$$ down the road, like service line coverage.

Did you know that you’re also responsible for all the underground service lines running below your property?! It’s true. If you haven’t already learned about service line coverage, we highly recommend you read up on it.

Building A New Home? Contact Us!

When it comes to building a home, there are a few different insurance policies you may want to get. Whether or not you need them will depend on a few things, such as if you’re building your home yourself, if you already own the land your home is being built on, if you’re hiring a contractor to do the work, and what insurance they already hold.

Without knowing your exact situation, we can’t tell you for sure what coverage you may benefit from. However, when it comes to discussing policies in order to determine this, our door is always open!

Remember– it’s important you get the right protection before the first shovel hits the ground. So, If you’re planning to build a new home and are unsure what coverage you’ll need, reach out. We’d love to chat with you!