Have you ever wondered what could happen if your builder goes bankrupt or experiences some other form of financial difficulty while your home is under construction? If you don’t have builder’s risk insurance, you could be left with a half-finished home and looking at other new home building contractors to do your roofing, plumbing or hvac installation in order to finish. The pros outweigh the cons, and there’s no reason not to go about building a new house. That’s why builder’s risk insurance is so important – it protects you from the financial risks associated with building a home. But what happens if you go without builder’s risk insurance? Here are many reasons why doing so is a huge gamble:
- If your builder goes bankrupt, you may not be able to finish your home. It’s not uncommon for builder’s to go bankrupt, especially during tough economic times. If this happens, you could be left with a half-finished home and no way to finish it.
- If your builder experiences financial difficulty, you may have to pay more out of pocket to finish your home. If your builder experiences financial difficulty, they may not be able to complete your home as originally agreed upon. This could leave you having to pay more out of pocket to finish the home yourself. This would delay the project considerably, as you would have to reschedule your appointments with other companies that were set to work on this build as well, like Pole Building Services or foundation firms.
- You could end up paying for repairs yourself if something goes wrong during construction. If something goes wrong during construction and your builder is at fault, you could be stuck footing the bill for repairs yourself.
- Your builder could walk away from the job, leaving you with an unfinished home. This is a risk if your builder is not financially stable. If they walk away from the job, you could be left with an unfinished home.
- You could be sued if something goes wrong during construction. If something goes wrong and someone is injured or there is property damage, you could be sued. Even if you’re not at fault, legal fees can add up quickly.
- Your builder’s workers could damage your property while working on your home. Even if your builder has insurance, their workers could still accidentally damage your property while working on your home. You may have to pay for repairs yourself if this happens.
- You may have to wait a long time to get your home finished if your builder goes bankrupt. If your builder goes bankrupt, you may have to wait a long time for them to sell their assets and for a new builder to take over the job. This could mean waiting many months or even years for your home to be finished.
- You may not be able to get your money back if something goes wrong. If something goes wrong and your builder is at fault, you may not be able to get all of your money back. In some cases, you may not be able to get any of your money back.
- Your builder could go out of business while your home is under construction. This is another risk if your builder is not financially stable. If they go out of business, you could be left with an unfinished home.
As you can see, there are many risks associated with building a home without builder’s risk insurance. If anything goes wrong, you could be left with a huge financial burden. So don’t take the gamble – make sure you’re properly protected with builder’s risk insurance. You can check out the Money Expert for more information about different types of home insurance.