Before anything is started there are several types of Insurance that need to be in place to protect the actual structure, the custom hom builder and the subcontractors.
Who pays for and obtains the insurance depends on the contract. It is up to you to understand what is needed and make sure it is in place before construction begins. A brief explanation of each is listed below.
Custom Builder's Risk
This protects the home while under construction for things like wind or fire damage, vandalism and theft. It includes limited liability protection.
Worker's Compensation
This covers injuries or lost time that occur on the job. Generally it is the custom home builder, subcontractors and suppliers that carry this. the buyer may also obtain this during custom home construction. Check state/province requirements.