What coverage issues are common for new construction homeowners in Cumming?

New construction homeowners in Cumming face a few coverage issues that buyers of older homes do not, mostly around setting the right dwelling limit, timing coverage correctly, and understanding what builder warranties do and do not cover. Getting these right from the start avoids surprises.

The first issue is the dwelling limit. With a brand-new home, you want the limit set to the full cost to rebuild, including any upgrades and finishes you selected. Buyers sometimes insure only the base price and forget the cost of lot prep and premium options, leaving them underinsured if the home is damaged.

The second issue is timing. Your homeowners insurance needs to be in force at closing, and lenders require proof. Coordinating the policy start date with your closing keeps everything smooth.

The third issue is understanding that a builder’s warranty is not insurance. A warranty may cover certain defects for a period, but it does not pay for fire, storm, theft, or liability claims, which is what your home policy is for.

For example, a Cumming family bought a new home with $90,000 in upgrades, including a finished basement and custom kitchen, but insured it at the base build price. After water damage destroyed the basement, their limit fell short of the true rebuild cost. Insuring to full replacement value would have covered it.

New neighborhoods near creeks may also have flood exposure worth checking with separate flood insurance. To start your new home off with the right coverage, request a free coverage review and we will set your limits correctly.