Summary of Key Points

• Bluffton’s continued growth has fueled significant residential construction throughout the Lowcountry.
• Building a new home creates insurance needs that differ from those of an existing home.
• Builders risk insurance helps protect a home while it is still under construction.
• Homeowners should understand who is responsible for securing coverage before construction begins.
• Reviewing insurance needs early can help prevent costly coverage gaps during the building process.

Bluffton continues to attract new residents thanks to its growing economy, coastal lifestyle, and convenient access to both Hilton Head Island and Savannah. As the area’s population expands, new neighborhoods and custom home developments continue to reshape the local landscape.

For many homeowners, building a new home is an exciting opportunity to create a space that fits their family’s needs. At the same time, construction introduces risks that are very different from those associated with an already completed home.

Before the first foundation is poured, it’s important to understand how insurance protects your investment throughout the construction process and what steps can help reduce unexpected financial risks.

Why New Construction Requires Different Insurance

A home under construction faces risks that simply do not exist after move-in.

Materials are delivered over several months, contractors and subcontractors regularly enter the property, and weather events can interrupt construction with little warning.

Potential risks may include:

• Fire.
• Theft of building materials.
• Wind damage.
• Vandalism.
• Accidental property damage during construction.
• Delays caused by covered losses.

Because a traditional homeowners insurance policy generally does not provide coverage while a home is being built, specialized insurance is often necessary.

Understanding Builders Risk Insurance

Builders risk insurance is designed specifically for homes and structures that are under construction.

This type of policy typically helps protect the project against certain covered property losses while work is underway.

Depending on the policy, builders risk insurance may provide coverage for:

• The structure while under construction.
• Building materials stored on-site.
• Permanently installed fixtures.
• Certain materials in transit.
• Temporary structures related to the construction project.

Coverage varies by insurer, making it important to review policy terms before construction begins.

Who Purchases the Builders Risk Policy?

One question many homeowners ask is who is responsible for obtaining builders risk insurance.

The answer depends on the construction contract.

In some situations:

• The builder purchases the policy.
• The homeowner purchases the policy.
• Coverage responsibilities are shared between both parties.

Rather than making assumptions, homeowners should confirm insurance responsibilities before signing construction agreements.

Understanding who provides coverage helps avoid misunderstandings if a covered loss occurs during the project.

Bluffton’s Coastal Location Adds Important Considerations

Building near South Carolina’s coast introduces unique insurance factors.

Bluffton homeowners should consider:

• Wind exposure.
• Hurricane season.
• Heavy rainfall.
• Flood risk.
• Construction timeline during severe weather months.

Builders risk insurance may cover certain wind-related losses depending on the policy, but flood damage is typically excluded and often requires separate flood insurance.

Evaluating these risks early helps ensure the insurance program reflects the property’s location.

Preparing Before Construction Begins

Insurance planning should begin well before construction starts.

Homeowners can prepare by:

• Reviewing the construction contract carefully.
• Confirming insurance responsibilities.
• Understanding policy exclusions.
• Evaluating whether additional endorsements are appropriate.
• Planning the transition to homeowners insurance after construction.

These conversations are often easier before work begins than after unexpected issues arise.

Frequently Asked Questions

Do I need builders risk insurance if my contractor already has insurance?

Possibly. A contractor’s insurance generally protects the contractor’s business and liability exposures, while builders risk insurance protects the home and covered materials during construction. Reviewing both policies helps clarify who is responsible for each type of risk.

When should builders risk insurance begin?

Coverage generally begins before or when construction starts, depending on the policy. Homeowners should ensure coverage is active before significant building materials are delivered or work begins.

Does builders risk insurance cover hurricane damage?

Coverage depends on the policy. Wind damage may be covered subject to policy terms and deductibles, while flood damage is generally excluded and requires separate flood insurance.

What happens when construction is complete?

Builders risk insurance is temporary. Once the home is finished and occupancy begins, homeowners typically transition to a standard homeowners insurance policy to provide ongoing protection.

Protecting Your Bluffton Home Starts Before Construction Is Complete

Building a new home is one of the largest investments many families will ever make. Understanding how builders risk insurance works—and ensuring appropriate coverage is in place before construction begins—can help protect that investment from unexpected setbacks.

As Bluffton continues to grow, homeowners have more opportunities than ever to build custom homes that fit their lifestyle. Taking the time