Builders Risk Insurance

[Angelica Hughes]

Hello!  I am getting ready to close on my first investment property and came across having to purchase 2 types of insurance in order to close on my funding from a fix and flip Line of Credit product.  The bank required I have both homeowner's insurance as well as Builders Risk Insurance.  I'm sure this varies from state to state so if anyone in NJ can shed some light here I would appreciate it.  I just want to make sure that it is absolutely necessary to obtain both kinds of insurances.  Thank you!