Spec house insurance requirements?

[Blake Winder]

I'm in the process of building a personal residence for my family and I. I'm acting as my own general and I am using a construction consultant that is an active builder. I was talking to our banker about possibly putting up a spec and the insurance requirements and I was a little confused by his answer as he indicated that I was lumped into my consultant's umbrella policy while I pay for and carry the builders risk. Am I right in my understanding that a "Builder" not only has to carry an general liability umbrella policy for his/her company, a builder's risk policy for each individual build, while requiring every sub he/she hires to carry his/her own general liability coverage? If so, what kicks in first? I'm guessing sub, then builder's risk, then the Umbrella? If I build one spec on an all cash basis is there really any incentive for me to worry about the Umbrella coverage as long as I have the builders risk insurance?