Do you need construction insurance when building a new home?

• Theft of equipment, material or tools on-site.
• Vandalism that can cause significant delays.
• Water damage from weather or leaks during the work.
• Fire that could partially or completely destroy the structure under construction.
• Damage to expensive materials like custom windows or specialized equipment.

• Injuries to workers not covered by their employer's insurance.
• Accidents involving visitors or onlookers at the construction site.
• Injuries to third parties caused by falling materials or the collapse of a temporary structure.
• Damage to neighboring properties caused by vibrations, flying debris, or mishandling.

Just like tools, materials stored on your property are a frequent target for thieves. These products accumulate progressively as the project advances, which increases the risk of loss.

The main materials covered by the contractor's insurance include:

• Structural materials: Framing lumber, beams, metal joists, and formwork elements that could be easily resold.
• Finishing materials: Flooring, tiles, shingles, doors, and windows whose value attracts thieves.
• Bulk products: Sand, gravel, cement, and other aggregates temporarily stored on the site.
• Permanent equipment: Sanitary appliances, light fixtures, and accessories intended for final installation.

The contractor's insurance covers these materials within the normal scope of a construction project. If you are building with the help of a general contractor, inquire directly with the company in charge of the site to find out the extent of their coverage.

If you want additional protection, you can purchase a personal builder's risk policy. This policy covers construction materials independently of the contractor's insurance, which offers you an additional safety net in case of theft or vandalism.

Coverage for material theft depends on several conditions. Insurers often require that the products be stored in a secure area or, failing that, that the site be monitored. Depending on the policy and the insurer's risk assessment, certain conditions could apply for the coverage to remain valid, particularly concerning security and property protection.

After a theft, the speed of your reaction is essential to obtain compensation. It is recommended to declare the incident to your insurer within 24 to 48 hours of discovery. This step helps to speed up the processing of your file and minimize the impact on the work schedule.

When you decide to build a new property, a Builder's Risk Insurance policy offers you complete protection against major disasters that could occur during the construction period and can offer extended coverage against certain major disasters during the work period, according to the conditions provided in the policy. This coverage protects you against fires and natural disasters (if covered) and other unforeseen events, which ensures your investment remains secure even in the event of a devastating claim.

For large-scale projects in Quebec, and depending on the type of project and the number of professionals involved, some insurers offer broader coverage called wrap-up insurance. This business insurance policy simultaneously protects all stakeholders on the job site, which simplifies claims management and reduces the risk of disputes between parties. Experienced contractors subscribe to this multi-risk formula to cover all work for the entire project period. As wrap-up insurance is not offered to individuals, check with your contractor to see if they hold this coverage before the job begins. If not, your personal home insurance remains your main safety net to protect your primary residence during the work.

Your home insurance should cover your residence as soon as the building structure is enclosed (roof, exterior walls, and windows installed). The Guarantee Plan for New Residential Buildings, administered by Garantie de construction résidentielle (GCR) and overseen by the Régie du bâtiment du Québec (RBQ), protects buyers against construction defects from the start of the work. Subscribing to your home insurance early will help you avoid surprises related to rising material prices. In Quebec, the Civil Code provides a five-year warranty against the loss of the structure for major defects affecting the solidity of your construction, while a one-year warranty covers apparent defects after the work is received.

A specific home insurance policy covering ongoing work is essential for self-builds. A standard policy will not protect you against all the particular risks associated with this process. The Guarantee Plan for New Residential Buildings does not cover self-build projects, as it requires a contractor accredited by the Régie du bâtiment du Québec (RBQ). To compensate for this lack of protection, an "all-risk" builder's risk policy will allow you to cover property damage to the structure during the work. It is also advisable to subscribe to a general civil liability insurance policy to cover potential damages caused to third parties during the project.

Entrusting your work to a contractor without a license from the Régie du bâtiment du Québec (RBQ) or accreditation with Garantie de construction résidentielle (GCR) exposes you to major financial risks in the event of a problem on the job site. Verifying these accreditations is an essential step before signing any contract. A GCR-accredited contractor gives you access to the Guarantee Plan for New Residential Buildings, which covers the completion of work, hidden defects, and poor workmanship for up to five years after reception. If your contractor does not hold these accreditations, consider subscribing to a builder's risk insurance policy (also called "all-risk insurance") to protect the structure under construction against unforeseen property damage during the work period.