Why not occupied and renovation insurance?

Question

Hi - we're close to deadline on a renovation and the insurance is my concern.  We have been doing large changes:   the walls are still open until the new baths are plumbed.  The electricity is being mostly redone and will be finished in about a week.  A heating system is going in.  While most will be done, what is essential for switching to occupied not vacant insurance?  I need for my son to live here soon for the school year.

The original plan was to rent out portions of the house in the fall, but even if that is delayed (because of not being renter-ready and lead based paint certification not done yet,) I still need him to be here (with insurance on the house.)

What is the insurance company looking for?   I think we want to transition from vacant/renovation insurance to occupied/no capital improvements/renovations still O.K.  Are there any other hybrids of insurance coverage for this situation?

Thank you

Kerry M. · Answer

Thank you Dion and Steve.  The house still does not have heat but I talked to a HVAC guy today and I think we have a solution and an installer.  Two electricians are coming to take care of electrical work.  The gutters are fixed.  One basement window needs fixing.  
In other words, by the 30th, which is the date the policy renews, I think we will be in livable condition.  
Past the renewal date we will still finish the new baths and cosmetics.  
As long as the house functions, why wouldn't they count it as regular insurance?  It is not a rental yet, just a house at this point.  I know insurance agents cast a wary eye to people who say this will be fixed....

Steve Babiak · Answer

Search for Affinity Group - they offer 1 month terms for the renovation insurance coverage, as opposed to the 3+ month plans that most insurers have.  Since you have "Rehabber" as part of your profile, that is the sort of plan that a rehabber usually seeks for the construction phase.

Dion DePaoli · Answer

Talk to your insurance provider, the risk is theirs.  You might have to check with local building department to see if the dwelling is still suitable for occupancy.  If it is not, the answer to insuring it as a occupied dwelling is pretty straight forward.  If the repairs you are doing do not prohibit occupancy, your insurance company should be able to help you out.