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 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.
Next, Home Completion Insurance takes over to protect your investment during the time your home is under construction until you take possession.