Builder's Risk Insurance for Homeowner

[Aundrea Newbern]

All,

I am purchasing a single family rental property for well under market-value.  Having said that, I need to put about $40,000 in repairs into it.  I'm in the loan process right now and I approached my insurance agent for a homeowner's quote.  I mentioned I have to do some repairs on the property and he's insisting I need to purchase a builder's risk policy.  It's about $200 more (for a six month policy) than my 12 month homeowner's quote.  I questioned the necessity of it and he said that I need it for protection and the homeowner's policy won't work since I'm doing some renovations.  My general contractor is fully licensed and insured and I've requested a copy of his insurance policy to review. Does anyone out there have any experience with this type of situation or any insurance agents that can comment on the necessity of such a policy? I don't want to unnecessarily spend money on something I don't need. Thanks!