Pre-Possession Insurance for single-family homes protects you from the hardship of a builder default no matter where you are in building a new home.
Pre-Possession Insurance combines i) Deposit Protection Insurance and ii) Home Completion Insurance:
Before building begins: Deposit Protection Insurance
Deposit Protection Insurance protects the payments you made to secure your building commitment until the building begins, up to a maximum coverage of $100,000; however, we recommend that you confirm with your homebuilder the amount of coverage you have specific to your purchase agreement.
During construction: Home Completion Insurance
Next, Home Completion Insurance takes over to protect your investment during the time your home is under construction until you take possession.