During the build: course of construction
Builder's risk (course-of-construction) insurance covers the structure while it's becoming a structure — materials, the partially built shell, theft of copper off the site. On a production home in a subdivision, the builder carries it; your exposure starts at closing. On a custom build or major remodel you commission, someone must deliberately buy it — sometimes the contractor, sometimes you, and the contract should say which in plain words. If you own the land and are funding the build, assume it's your conversation to start; construction lenders require it. Liability during construction matters too: confirm your GC's coverage, and keep your own premises liability alive on land you own (an empty lot with trenches is still an attractive place to get hurt).
At closing: the first HO-3
Your homeowners policy must be effective on or before the day you close — the lender requires evidence before funding, same as any purchase (the escrow mechanics). Quote it early and enjoy the tailwind: new construction hits every underwriting sweet spot — roof year = this year, all four systems new, current code throughout — and many carriers layer explicit new-home discounts on top. One California caveat keeps it honest: the parcel still gets a wildfire score, and a brand-new home on a brush-facing ridge shops the brush-facing market. New construction fixes the house variables, not the location ones.
Builder warranty ≠ insurance
The builder's warranty is the builder's promise about workmanship and systems for stated periods; your HO-3 covers fortuitous damage — fire, theft, water discharge, wind. A construction defect is a warranty (and possibly legal) conversation; a kitchen fire is a claim. They coexist and neither replaces the other. Keep the warranty documents with your policy papers, and route defect questions to the builder and, if needed, your attorney — that lane isn't ours.
Closing on new construction?
Your quote should be the easiest one in California — let's prove it.
Four minutes to an indication with this-year answers for roof and systems; binder and mortgagee clause delivered on your closing timeline. No fee.
Get a pricing indication →Set Coverage A from the build, not the price
You have something most homeowners never get: an actual construction cost, itemized. Use it — Coverage A should reflect rebuild cost including the upgrades you selected, not the developer's base price and not the mortgage amount. Document the finishes while the receipts exist: the flooring schedule, the countertop invoice, photos of every room. That file sets the limit correctly today and becomes claim evidence forever. Add extended replacement cost anyway — new homes rebuild in the same demand-surge market as old ones — and inventory the move-in wave of new contents while the boxes are fresh (Coverage C discipline is cheapest on day one).
Frequently asked
When exactly should I start shopping?
For production homes: as soon as you have a target closing window. For custom builds: at permit time, so the builder's-risk and hand-off timing is planned rather than improvised. Either way, early costs nothing and surprises get discovered while they're cheap. The buyer timeline →
Do smart-home packages earn discounts?
Monitored alarms and water shutoff devices commonly do — many new builds pre-wire for exactly the devices carriers reward. Certificates from the installer make the credits real. Device credits →
The home won't be occupied for a while after closing. Problem?
A stretch between closing and move-in is common and worth mentioning to your broker; an extended gap starts to look like vacancy, which has its own answers. Say the real dates and let the coverage match.