Course of Construction Insurance
Your Future Home Has No Coverage Until You Buy It One.
A home under construction isn’t covered by a homeowners policy — that policy only applies once the home is complete and occupied. From the day ground breaks until the day you move in, the structure, the materials on site, and your liability exposure as the property owner all sit without coverage unless you have a course of construction policy in place. A single storm, a fire, a theft of materials, or an injury on the job site can set a project back months and cost tens of thousands of dollars out of pocket. At Mythic Insurance, we place course of construction coverage for Alabama families building new homes — so the project you’ve planned and funded is protected while it’s being built.
The Structure Is Exposed From Day One.
The moment construction begins, you have a financial stake in a structure that no standard policy covers. Course of construction insurance — also called builder’s risk — protects the home as it’s being built against fire, storm, vandalism, theft, and other covered losses. The coverage value increases as construction progresses, keeping pace with the growing investment in the structure.
Materials on Site Are a Real Target.
Lumber, framing, roofing materials, fixtures, and appliances staged at a job site are valuable and vulnerable. Theft from active construction sites is common, and storm damage to unenclosed framing can be significant. Course of construction coverage protects materials on site — not just the completed work — so a theft or weather event doesn’t force you to fund the same materials twice.
You Have Liability Exposure as the Owner.
If someone is injured on your construction site — a visitor, a neighbor, anyone not covered under the contractor’s policy — your liability as the property owner is real. Owner’s liability coverage addresses your personal exposure during the construction period, separate from whatever coverage your general contractor carries for their own workers and operations.
Coverage That Builds With Your Home
How the Coverage Limit Works
A course of construction policy is typically written for the completed value of the home — the total projected cost of construction. As the project progresses, the insured value grows to match the work completed. If a covered loss occurs early in the project, the settlement reflects the value of what's been built. At the end of construction, the policy converts to a standard homeowners policy. Understanding this structure at the start helps you set the right coverage limit from the beginning.
Your Contractor's Insurance Isn't Enough
A licensed and insured general contractor carries their own liability and workers compensation coverage — but that coverage protects the contractor, not you. It does not cover the structure itself against physical damage. It does not cover your personal liability as the landowner. And it typically does not cover materials and equipment staged on site that aren't under the contractor's direct control. A course of construction policy fills those gaps specifically for the owner's interest.
Timeline Extensions and Soft Costs
Construction projects run long — delays caused by weather, material shortages, permitting, or contractor scheduling are common. Some course of construction policies can be extended when a project runs past its original completion date, and some include coverage for soft costs — architectural fees, permit costs, and carrying costs — incurred as a result of a covered loss that delays the project. These are coverage features worth discussing when setting up the policy, not discovering after a problem occurs.
⭐⭐⭐⭐⭐ What Our Clients Are Saying
"We broke ground on our new home in Madison last spring and I assumed our lot was covered under our existing homeowners policy somehow. When I mentioned it to Mythic during a routine review, they explained that we had zero coverage on the construction project itself. We got a course of construction policy in place within a week. Two months later a severe storm damaged the framing. The claim was handled smoothly and the project stayed on schedule."
"We had lumber and framing materials staged at our job site for about three weeks before crews got back to it. Someone hit the site over a weekend and took a significant amount of material. Without course of construction coverage I'd have been buying that lumber twice. Mythic had us covered and the claim reimbursed the full cost of the stolen materials."
"Building a custom home is already stressful enough without worrying about whether a fire or a storm could wipe out six months of work. Mythic got us set up with a course of construction policy that covered the home from framing through completion. When we moved in, it converted straight to our homeowners policy. The whole process was cleaner than I expected."
What Course of Construction Insurance Covers
A course of construction policy — also referred to as builder’s risk insurance — covers a residential structure during the period between groundbreaking and occupancy. It is designed for the owner’s interest, covering the structure and materials during construction against fire, storm, lightning, hail, vandalism, theft, and other named perils.
The coverage limit is set at the projected completed value of the home and adjusts as construction progresses. At project completion, the policy typically converts to a standard homeowners policy.
Coverage components include the structure itself as construction progresses, materials and supplies on site or in transit to the site, and owner’s liability for the property during the construction period. Soft costs coverage — for carrying costs, permit fees, and similar expenses resulting from a covered loss — is available on some policies and worth considering for larger projects.
The policy does not cover the contractor’s liability or workers, which are addressed under the contractor’s own insurance. It specifically covers the owner’s financial interest in the project — what you’d lose if the work completed to date was damaged or destroyed.
Our Approach
Project-Specific. Timeline-Aware. Built Around the Owner’s Interest.
We Set Coverage at the Right Value From the Start
The completed project value — not the land value, not the current construction cost — is what drives the coverage limit. We work through that number with you upfront so the policy is calibrated correctly from day one.
We Clarify What Your Contractor's Insurance Doesn't Cover
Most homeowners building for the first time assume their contractor's insurance has them covered. We walk through exactly where that coverage ends and where yours needs to begin.
We Manage the Transition to Homeowners
As the project wraps, we prepare your homeowners policy so coverage transitions seamlessly at occupancy — no gap between construction completion and moving in.
Why Mythic Insurance for Course of Construction Insurance?
Independent Advantage
We work with multiple carriers offering course of construction coverage and compare terms, coverage scope, and pricing to find the right fit for your project size, timeline, and construction type.
Claims Support During a Critical Period
A loss during construction is time-sensitive — delays cost money. We're here to help document the claim quickly, work with the carrier, and get the project back on track as fast as possible.
We Know the Alabama Building Environment
Alabama's weather — severe storms, high winds, hail, and summer heat — creates real risk for open construction sites. We understand what Alabama projects face and make sure your coverage reflects it.
One Less Thing to Worry About During a Build
Building a home is complicated enough. Knowing the project is covered lets you focus on the decisions that matter — not on what happens if something goes wrong.
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