Construction Performance Insurance - Is it necessary?

I beg to differ. I do find this builder's risk insurance useful. Even though it is not mandatory, I have taken one out. If damage occurs during construction, many companies want a guarantee from the bank. When money is already tight, that looks bad.

I also believe that this insurance is important. It protects the builder as well as the construction contractors from damages. This insurance applies for the entire construction period. These damages also include storm and flooding. Especially because of the storm, I would take one out. The amount of the insurance of course depends on the construction value. However, there should be no underinsurance.

I had considered whether a construction all-risk insurance was necessary. But I did take one out and it has paid off. We had a break-in at the construction site and the vandals caused some damage. I would have been stuck with these costs, but the insurance covered the damage.