Things to Consider in Building Your New Home

Onyx Insurance Brokers

Building your dream home is one of the most exciting events for you and your family. The thought of living in your new home and making great memories together with your family will surely draw a genuine smile to your face.

However, before you put these thoughts into actions, there are a number of things to consider. Building your own home is as exciting as it is challenging. You’ll surely want to protect this dream in progress, as your guide, you may consider the following as you build your new home.

  1. Know what you want

One of the perks of building new is that you can actually customize it. Come with inspiration, check home ideas and designs online or in magazines. Create a Pinterest board, a scrapbook from home magazines or an idea folder filled with what you like.

  1. Choose a floor plan

Now that you have an idea of what you want, it’s time to make your first big decision: the floor plan. It is considered as the baseline of your project since it will determine the size, style, quality and features of your new building.

Whether the floor plan came from the builder’s catalog, a book or the internet, it needs to be okayed or adjusted by a local general contractor or architect before work can begin.

  1. Estimate the cost per square foot

To get this estimate, take the total cost (which you’ll get from the builder) and divide it by the number of square feet in the building. You can do the same for similar, newly constructed homes and commercial buildings in your area. Take the price of the building, subtract the price of the land it stands on, and divide the result by the number of square feet you want to have. Doing this with a few different examples will give you the going rate for this kind of construction. Comparing these numbers will help you determine whether or not your builder’s estimate is reasonable.

  1. Budget for the unexpected

Know that delays are part of the construction process and can carry additional costs. Workers need to be paid for those extra days. Damaged or defective materials need to be replaced. If tools are stolen, they need to be replaced, too.

  1. Hire a real estate agent

Now that you know what you want to build and have a rough budget, you can start gathering your team. A real estate agent is the first member you should consider recruiting. A real estate agent will represent your interests.

  1. Find the right builder

Choose a builder who routinely builds the type of home or commercial building you want. It is also important that your builder is insured and bonded.

Insurance policies you’ll want to look for are:

  • Workers’ Compensation — helps employees when they are injured on the job.
  • General Liability — protects the company from getting sued into bankruptcy (more or less).

It is also recommended to ask questions about whether they use independent subcontractors, and verify their licenses and bonds as well. Doing this background check on the company will ensure that you are hiring a crew that is experienced and has a good reputation.

  1. Understand the contract you are signing

You’re going to be working with this builder for months. Establish expectations from both sides, always list in detail anything that you expect the builder to do, even if the contract doesn’t specify it. It is recommended to make a detailed construction contract as possible. Not only does it clarify what everyone expects of each other, it gives an accurate estimated cost and a clear breakdown of where your money is going.

  1. Make sure there’s Insurance


Builders’ risk insurance, a.k.a., course of construction insurance, which is usually purchased by the builder or general contractor, protects against mistakes and mishaps that can damage a structure, equipment and materials waiting to be installed.

It’s important to make sure they have adequate coverage in place to recover the current value of your project, including labor costs, if a loss occurs due to a set number of causes. This will also help to keep construction on time and within budget.

No matter the scope of your home construction project, take the time to understand your insurance needs and secure appropriate coverage before work begins. The last thing you want in the event of a construction incident is to realize your safety net was full of holes.

ONYX insurance brokers can help you get to know the details you need in building your new home. You can contact or email us for more information.

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