Fremont, CA · Member since 2011 · 20 posts · 0 votes
What is the main difference? My insurance agent told me they are different and they have they those policy in place.
My question is if I bought a Construction policy? does it mean i have to build a new construction or remodeling/rehab is OK? Also if the construction begins in 2 weeks away, would the policy cover any damages happened before the construction starts? after the construction, and when I list the property on the market for sale, do I need to change the policy back to vacant policy?
Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
14y
Your agent should have really covered this with you.
Vacant Hazard Insurance is for a home that is vacant and covers liabilities that are in concert with home not having anyone it such as squatters breaking in and getting hurt as well as natural damage like the wind damaging the roof.
A construction policy will typically cover all of this and have additional coverage for the liabilities surrounding the construction that is taking place on the property. Things like material theft and workers getting hurt or squatters getting hurt, etc.
Your VHI policy should cover minor repairs but if you are doing some major construction then you will need to get a construction policy. The policy will detail the definitions of such events or you should be able to ask your agent. The terms and conditions will overlap a bit between the two. You should not need to carry two separate policies.
Again, you agent should be able to explain this in detail, if they can't go find another one.