Whether you're building your dream home or remodeling your current one, you've taken on a lot of additional risks, many of which are not automatically insured.
Enjoy the excitement, but make sure that your insurance is adequate for the new risks in your life.
Here's a list of some of those risks and how I recommend you handle them:

• Property damage to new construction from fire, wind, vandalism, and so on: If you're building a new home, have a clear understanding with the builder, in writing, as to who is responsible for the property insurance.
  Make it a requirement that the party who buys the insurance also names the other party as loss payee.
  Require that proof of the insurance be provided prior to the start of construction.
  If you, as the homeowner, are responsible for the insurance, buy a homeowner's policy rather than a builder's risk policy.
  Homeowner's coverage is much more comprehensive and includes, at no extra charge, liability coverage for job-site injuries.
  
• If you're remodeling, increase your homeowner's building-coverage limit, at the time the work starts, to the revised cost to replace your home with the improvements.
  
• Theft of building materials: Normally materials aren't covered until they're installed in your home.
  Either contractually require the contractor to be responsible for all materials until they're installed, or add a
• theft of building materials endorsement to your homeowner's policy and delete the endorsement when everything is installed.
  
• Lawsuits from job-site injuries: These are usually covered by your homeowner's policy, but this is a good time to reevaluate your personal liability limits.
  Consider adding an umbrella policy if you don't already have one (see Chapter 15).
  Also, in your construction contract, require the contractor to defend you and pay any judgment against you for injuries or property damage he or his crew cause.
  Request proof of the contractor's general liability insurance before work starts.
  If he doesn't have insurance, you're much more apt to be sued yourself if someone gets hurt.
  
• Workers' compensation claims filed against you for medical bills and lost wages from any worker injured on the job: This risk is not covered by your homeowner's policy.
  Require written proof from your contractor that he has workers' compensation insurance covering all workers before any work starts.
  Run all labor costs - even if you're paying your friends to chip in - through the contractor, so that you're not at risk for anyone's injuries.
  

Another option is to buy your own workers' compensation policy for the period of construction, especially if you're acting as your own general contractor.
Don't start new construction without someone - you or the contractor - having workers' compensation insurance in place.

• Injuries and property damage that happen to you or your home after the work is completed: For example, the furnace blows soot through the house, a defective fireplace causes a major building fire, or the roof leaks from a defective installation.
  Require in your construction contract that the contractor provide you proof of general liability insurance, including completed operations coverage, which covers this kind of claim.
  If there are injuries or damages later, you may have a source of insurance to collect from.
  
• The contractor skipping out and not paying subcontractors, who then file liens against your property: Require the contractor to get lien waivers signed by all subcontractors prior to your paying for the work.
  Or, if he's not agreeable to that, pay the subcontractors directly.
  
• Misunderstandings between you and the contractor, causing significant frustration and financial loss: Always work with a contract and a good attorney.
  Incorporate into the contract the issues addressed in this list!