Home Insurance for New Construction: A State Farm Guide

The first time I walked through a client’s new build, the drywall was up but the trim carpenters were still working. The lender wanted proof of homeowners coverage by the end of the week. The builder’s superintendent said his policy “had it covered.” Both were partly right and partly wrong. That gray zone between construction and occupancy is where many new homeowners make expensive mistakes. This guide untangles those details from the perspective of the people who place policies and solve problems every day.

What your builder covers, what you must cover

Most reputable builders carry general liability and a builders risk policy. Those protect the structure while it is under construction, cover building materials on site, and address certain injuries or accidents connected to the construction operations. The builder’s policy does not protect your personal property, your liability as the property owner, or any changes after substantial completion. If you are bringing in appliances early, installing custom fixtures you purchased directly, or making owner-directed changes, your exposure may sit outside the builder’s coverage.

Lenders draw a firm line at the point of occupancy. When the certificate of occupancy is issued, or when you close and get the keys, they expect a homeowners policy, commonly an HO-3 with replacement cost on the dwelling. If closing slides a week and you move a few boxes in early, that can create a coverage gap. Talk to the builder and your State Farm agent about dates, access, and stored items before you start moving property onto the site.

A practical timeline that reduces risk

New construction unfolds in stages. Your insurance strategy should match those stages to avoid lapses.

During land purchase, vacant land liability is limited. If you own the lot for months before ground breaks, your homeowners policy cannot attach to a house that does not exist yet. Some owners add the parcel to an existing policy for premises liability, or the lot is covered by a personal umbrella. Ask your agent what fits your situation and local ordinance expectations.

At groundbreaking and framing, the builder’s coverage should be primary. Verify it. Request a certificate of insurance showing a builders risk policy and general liability. Confirm that theft of materials, vandalism, wind, and rain are addressed. If you are storing expensive owner-supplied fixtures on site, make sure the policy contemplates those items or consider a separate inland marine or personal articles option until the home policy starts.

As mechanicals and finishes go in, risk of water damage climbs. Temporary heat and plumbing tests can lead to leaks. A builders risk policy often responds, but exclusions can surprise you. One winter, a client’s upstairs tub supply line failed two days after installation, soaking ceilings and hardwoods. The builders risk carrier paid for the tear out and dry out, but the debate over upgraded plank replacement versus builder-grade ate weeks. Document your selections and invoices so value is clear.

At certificate of occupancy or closing, the homeowners policy should be active. A State Farm quote will reflect the square footage, construction grade, roof type, and local labor costs. Your State Farm agent can coordinate effective dates with title and the builder so you are not blind for a single night.

Builders risk versus homeowners, in plain terms

Here is the short version most new owners wish they had months earlier:

• Builders risk is for structures under construction, materials, and certain site exposures. Homeowners is for a completed, occupied dwelling, personal property, and personal liability.
• Builders risk is usually carried by the builder and ends at substantial completion or occupancy. Homeowners is carried by the owner and begins at closing or when you take possession.
• Builders risk often excludes personal belongings and owner-supplied items unless scheduled. Homeowners covers your contents, subject to limits and deductibles.
• Builders risk is tailored to a project budget. Homeowners uses replacement cost estimates tied to labor and materials in your zip code.
• Builders risk often has strict theft safeguards. Homeowners offers broader theft protection once the home is occupied.

If your project is a true owner-build where you serve as the general contractor, your agent can help you explore a builders risk policy in your name, then convert to homeowners at completion. That conversion usually requires inspections and confirmation that permanent utilities and safety systems are in place.

Setting dwelling coverage the right way for a brand-new house

The number that drives premium and protection is the dwelling coverage limit. For new builds, owners often anchor to the purchase price. That can be dangerous. Land value is not insurable under a homeowners policy, and market price lags behind swings in labor and materials. During the last few years, sheet goods, copper, shingles, and skilled trades all jumped in cost, then settled into a new baseline. It is common to see replacement cost per square foot range from 150 to 350 dollars for standard construction, and 400 to 700 dollars or more for highly custom work with imported finishes or complex architecture. Your agent and the State Farm replacement cost estimator will ask about:

• Finished square footage, including basement finish levels.
• Roof type and pitch, decking materials, and impact resistance rating.
• Exterior walls, window types, insulation, and energy systems.
• Kitchen and bath counts, cabinetry grade, countertops, and flooring.
• Specialty features like radiant heat, whole-house generators, solar arrays, smart home systems, built-ins, and millwork.

Do not lowball this input to chase a lower premium. The policy pays up to the limit you select. If a storm takes off half the roof and rains in for six hours, you will want an accurate budget for decking, shingles, labor, code upgrades, and interior restoration.

Extended replacement cost can provide an extra cushion, typically 10 to 50 percent depending on availability and underwriting, if a regional catastrophe spikes costs. Inflation guard is a separate feature that automatically adjusts your dwelling coverage through the year. Together, they help you keep pace with real costs.

Ordinance or law coverage matters more on new codes, not less

It sounds backwards at first, but newer homes can still face code upgrade expenses after a loss. Local codes evolve. A home built to 2024 standards may still need different nailing patterns, added bracing, or thicker underlayment if repaired in 2029. Ordinance or law coverage adds funds for the cost of tearing out undamaged portions to complete a code-compliant repair and to pay for the mandated upgrades. If your roof decking must be entirely removed to meet new attachment requirements after hail damage, those extra costs are not trivial. Ask for a meaningful limit, often 10 to 25 percent of Coverage A, and adjust if your jurisdiction is especially strict.

Personal property and what counts as part of the house

In new builds, the line between building property and personal property can blur. Built-in appliances that are wired or plumbed in are typically part of the dwelling. Freestanding refrigerators or washers that slide out are personal property. Light fixtures, cabinets, and hard-surface flooring are building items. Rugs, drapes, and furniture are contents. This distinction matters because claims pay under different coverage parts and deductibles.

For high-value items like art, jewelry, or custom audio components installed after closing, a personal articles policy can carve out broader, often deductible-free protection. For tools you use during move-in, remember that homeowners policies limit theft coverage for business property and tools, especially off premises. If you are a contractor storing equipment at your own new home, ask about business endorsements or a separate inland marine policy.

Water, the silent budget-killer

Water claims are the most common headaches in the first year after construction. Pressure tests occur, dishwashers run for the first time, and supply lines settle. Two endorsements frequently justify their cost:

• Water backup, which addresses damage from a backed-up drain or failed sump pump. Standard policies exclude this, and basement finishes change the math quickly. A two-day sump failure during a power outage destroyed 600 square feet of brand-new luxury vinyl plank for one of our clients. Their 10,000 dollar water backup limit was gone in hours. Consider a higher limit if you have a finished basement or multiple lower-level baths.

• Service line, which covers underground utility lines you own, such as water, sewer, and power. New construction does not make these invincible. Soil settles, roots find seams, and heavy vehicles compress trenches. Replacement can run several thousand dollars, compounded by landscape repair.

  

Equipment breakdown can also be smart for homes with geothermal units, variable-speed HVAC, and sophisticated electrical systems. It is an inexpensive way to cover sudden mechanical or electrical failure that a standard warranty might not address.

Roofing, wind, and hail: build smarter, insure better

If you live in a hail belt or coastal wind zone, roof choices carry long-term premium and claim implications. Impact-resistant shingles can earn premium credits with many carriers, including State Farm, and tend to last longer under moderate hail. Hip roofs generally fare better in wind than gables. Some regions recognize FORTIFIED Roof standards that improve both resilience and insurability. If your builder offers options, run the numbers. An extra 2,500 to 6,000 dollars up front can pay back through credits and fewer disruptions later.

Deductibles also deserve attention. Separate wind or hail deductibles are common. A 1 percent deductible on a 600,000 dollar dwelling is 6,000 dollars out of pocket each claim. Balance the savings from a higher deductible with what you could easily fund twice in one year, since hail often hits in clusters.

Liability during a chaotic first month

Friends help you move. Contractors return to touch up paint and punch out lists. Children visit to see the new rooms. Falls and injuries during this period are frequent. Your personal liability coverage activates when your homeowners policy is in force. Standard limits begin at 100,000 dollars, but many owners select 300,000 or 500,000 dollars. Pairing that with a personal umbrella policy of 1 to 5 million dollars can be surprisingly affordable and brings peace of mind if a serious injury leads to litigation.

If your lot includes unfinished areas, steep grades, or retaining walls, consider simple temporary barriers and lighting. Courts look at reasonable steps taken to make premises safe.

How to coordinate coverage without drama

Here is a short, workable sequence that has saved my clients time and fees:

• Collect the builder’s certificates of insurance and confirm expiration dates extend beyond your planned completion.
• Share your plans, specs, and any change orders with your State Farm agent so the dwelling estimate reflects real finishes.
• Set a target effective date for the homeowners policy to match closing, then build in a three-day cushion for last-minute lender delays.
• Walk the property a week before closing and photograph installed upgrades, serial numbers, and any owner-supplied fixtures.
• Arrange final proof of insurance, mortgagee clause, and paid receipt for the lender at least 48 hours before settlement.

Your lender may escrow the first year’s premium or collect it at closing. The mortgagee clause must match the final loan entity listed on your closing disclosure, which sometimes differs from the brand on your preapproval. Your agent can update that in minutes if you provide the exact clause.

Smart home credits and real security

Many new homes ship with monitored alarms, water shutoff valves, and temperature sensors. Those devices can earn premium credits and, more importantly, avert losses when nobody is home. A monitored central station alarm usually earns more credit than a local siren. Auto water shutoffs with leak sensors in key areas, such as under sinks, behind the refrigerator, and near the water heater, can turn a 30,000 dollar hardwood replacement event into a towel-and-fan cleanup. Tell your State Farm agent what you have installed so credits apply correctly.

Condos, townhomes, and master policies

New construction is not limited to single-family homes. If you are buying into a condominium or townhome community, a master policy typically insures the shell and common elements. The open question is where your personal policy begins. Some associations are bare walls in, others are walls in, and a few go all the way to original builder-grade finishes. If the master policy is bare walls in, your unit owners policy must cover drywall, insulation, flooring, cabinets, and built-ins. Review the declaration pages and bylaws with your agent. New buyers often underestimate the Coverage A needed on a condo because they think of it as contents only. That mistake shows up during your first claim when you find you are responsible for all interior rebuilds.

Loss assessment is another key item. A master policy deductible or uncovered loss can be assessed to Danny Fernandez - State Farm Insurance Agent State farm agent owners. A reasonable loss assessment limit on your policy protects you from a surprise bill after a roof or pool claim that exceeds the association’s prepared funds.

Renting or short-term leasing a new build

Planning to rent your new home for a year while you relocate, or list a guest suite on a short-term platform? Standard homeowners policies can restrict or exclude rental activity, particularly short-term rentals. Be upfront about your plans. A landlord policy or a short-term rental endorsement changes both the rating and the way claims settle. Tenants introduce liability considerations and property wear patterns very different from owner occupancy. Protect the investment the way a commercial property manager would, not the way a weekend hobbyist might hope.

How pricing really behaves on a new home

New construction often qualifies for a new home discount, which can be meaningful for the first several years. Modern wiring, plumbing, and roofing reduce loss frequency. Protective devices add credits. On the other hand, higher replacement cost per square foot, complex systems, and the presence of a finished basement can push the premium up. Expect the annual premium for a 2,500 square foot, standard-finish home in a moderate-risk area to land somewhere between 1,200 and 2,800 dollars, with higher ranges in coastal and hail-prone regions. These numbers move with deductibles, endorsements, and local loss history. A State Farm quote built from your actual specs beats any generic estimate. If the home is in a wildfire interface, coastal wind pool, or floodplain, separate or specialized policies may be involved.

Flood and earthquake are their own conversations

Flood is excluded from standard homeowners coverage. If your lot sits near water, in a mapped flood zone, or at the low end of a new subdivision where drainage is still settling, run a flood quote. Preferred zone flood policies can be surprisingly affordable, and new clay soils can shed water toward your foundation before landscaping matures. Earthquake coverage is similar. Regions that did not worry 20 years ago are revisiting the risk, and new framing can be stiff enough to transfer forces in ways older homes never felt. Ask, do not assume.

Real claim stories that shape better choices

One family installed a professional-grade fridge two weeks before closing because the vendor had a narrow window. Thieves cut power to the site and walked the unit down makeshift ramps at night. The builder’s coverage denied the loss because the appliance was owner-supplied and not yet part of the building, and there was no homeowners policy in force. A personal articles policy on big-ticket items for a month would have cost under 50 dollars and solved the problem.

Another owner selected basic shingles and declined impact-resistant upgrades to save 2,800 dollars. Two spring hail events in three years led to two roof claims, each with a 5,000 dollar out-of-pocket share due to a percentage deductible. The math shifted fast. On the next build, they opted for impact-resistant shingles and a slightly higher dwelling limit in exchange for a premium credit and fewer headaches.

During a polar snap, a brand-new tankless water heater froze when a vent hood was left open post-inspection. Equipment breakdown picked up the unit replacement when the manufacturer warranty balked at freeze damage. That 40 dollar annual endorsement prevented a 2,300 dollar surprise.

Working with a State Farm agent on a new build

A local State Farm agent lives in the same weather patterns, building code environment, and contractor network you will rely on. That perspective matters when you are picking endorsements and limits. Agents who write a lot of new construction also know how to coordinate proof of insurance for the lender, set mortgage clauses correctly, and time the transition from builders risk to homeowners without a gap.

If you like face-to-face guidance, an insurance agency near me search will surface agents who know your neighborhood’s quirks, down to which roofs survived the last hailstorm and which cul-de-sacs pond during heavy rain. If you prefer to start online, a State Farm quote request lets you plug in basic details now, then refine the specs with your agent when your builder finalizes selections. Either path beats a last-minute scramble.

One more reason to engage early: bundling. If your car insurance is with State Farm, or you are open to moving it, multi-policy discounts can significantly offset the homeowners premium. Auto telematics programs, new vehicle ratings, and defensive driver courses can further chip away at cost. Many clients end up paying within a narrow band of their old numbers even after moving to a larger, better-protected home, simply by structuring their bundle well.

Final walk-through: paperwork that makes claims easier

New homes come with a paper trail. Organized owners have smoother claims and faster resolutions. Keep digital copies of floor plans, appliance serial numbers, finish schedules, and final invoices. Save home network documentation for thermostats, leak sensors, and security systems, including monitoring contracts. Take a slow camera sweep of each room after move-in. If a pipe fails six months later, those images answer half the adjuster’s questions before they need to be asked.

Coordinate with your builder about warranty procedures. Builder warranties can address workmanship issues that a homeowners policy will not. If a tile shower pan fails due to installation error, a builder’s warranty is the right first call. Your claim should fund accidental direct damage, not construction corrections. Clear documentation helps sort that boundary without friction.

The quiet value of choosing well at the start

Insurance on a new home is not just about checking a lender’s box. It is about aligning the policy with the way you actually live in and use the space. If you travel often, water and security technology deserve investment. If you have a workshop, tool coverage and liability during delivery days are real concerns. If you adopted a finished basement, water backup and service line limits are not abstract riders, they are core coverage.

A straightforward conversation with a State Farm agent, anchored by real numbers from your builder and a few what-ifs shaped by local experience, usually produces a policy that fades into the background where it belongs. You will see it again when a thunderstorm knocks out power and your sump pump barely misses a beat, or when a roof inspection after a hailstorm feels like routine maintenance rather than a financial cliff. That quiet confidence is the goal.

When you are ready, bring your plans, your projected closing date, and a few photos of the site to the table. Ask for a State Farm quote that contemplates today’s materials and tomorrow’s codes. Bundle it with your car insurance if it makes sense, and use your local insurance agency as a partner during those last hectic weeks before move-in. You are building more than a house. Protect it with the same care you give the structure itself.

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Address: 5975 N Federal Hwy Ste 105, Fort Lauderdale, FL 33308, United States
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People Also Ask (PAA)

What types of insurance are available?

The agency offers auto insurance, homeowners insurance, renters insurance, life insurance, and business insurance coverage in Fort Lauderdale, Florida.

Where is Danny Fernandez – State Farm Insurance Agent located?

5975 N Federal Hwy Ste 105, Fort Lauderdale, FL 33308, United States.

What are the business hours?

Monday: 9:00 AM – 5:00 PM
Tuesday: 9:00 AM – 5:00 PM
Wednesday: 9:00 AM – 5:00 PM
Thursday: 9:00 AM – 5:00 PM
Friday: 9:00 AM – 5:00 PM
Saturday: Closed
Sunday: Closed

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You can call (954) 446-0826 during business hours to receive a personalized insurance quote based on your specific needs.

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Yes. The agency helps with claims guidance, coverage updates, and policy reviews to ensure your insurance protection remains current.

Landmarks Near Fort Lauderdale, Florida

• Fort Lauderdale Beach – Popular oceanfront destination with shopping and dining.
• Hugh Taylor Birch State Park – Scenic coastal park with trails and picnic areas.
• Bonnet House Museum & Gardens – Historic estate and tropical gardens.
• The Galleria at Fort Lauderdale – Major shopping mall nearby.
• Las Olas Boulevard – Dining, shopping, and entertainment district.
• Anglins Fishing Pier – Well-known fishing and sightseeing pier.
• Broward Health Imperial Point – Nearby regional medical facility.