The simplest way to insure your property is to obtain a builder’s risk insurance policy. This is made easy as it is precisely for property that is new construction or in the process of being remodeled. These types of policies typically cover damages or destruction resulting from fire, lightning, hail or wind storm, some sort of explosion, aircraft, motor vehicle, smoke, and vandalism. One thing to be aware of is that a builder’s risk policy does not cover liability, and should be purchased separately.

As for obtaining liability insurance, check with your insurance agent to see what your current homeowner’s policy has on it with regard to liability (limits and total coverage). You may ask your agent to attach a rider with your current policy to cover your new investment property as well. This is an excellent way to protect yourself during a temporary remodeling project.

Also, be sure to ask your agent how much your coverage for in the chance that someone (worker) would get hurt on your jobsite. It would be a good thing to know in advance should an unfortunate accident happen to somebody.