InsurancePoliciesOnline.com specializes in providing the required insurance protection to Owner Builder clients of IndyMac Bank. The following insurance is required from IndyMac in order to close your Home Construction Loan as an Owner Builder.

Property Insurance to protect against damage to the home while under construction. IndyMac requires a "special form," or "all-risk" coverage form. This is usually provided with a Builder’s Risk policy. The coverage applies to damage to the building and materials during the course of construction. The builder’s risk policy is an all-risk coverage form providing protection against fire, theft, lightning, vandalism, etc. Coverage is provided based on the total completed value of the home. The owner is the policyholder and IndyMac Bank is listed as the Mortgagee. Once the project is completed, permanent property coverage is required in the form of a homeowner’s insurance policy. Learn more about builder's risk coverage here.

Liability Insurance protecting against injury to a third party at the construction site. This coverage may be provided under either a Personal Liability or General Liability policy. Most owner builder's will use the Personal Liability option. Contractors and owners operating without a site supervisor should obtain a general liability policy.
Personal Liability insurance is purchased by the owner to protect their interest as the property owner where the home is being constructed. It requires the use of a site supervisor or homebuilder and sub-contractors who each have their own insurance. The personal liability policy must have a limit of at least $300,000. Learn more about personal liability coverage here.
Commercial General Liability is required of contractors and owners who are directly performing the construction work. This is a standard liability policy for a business. It will protect against claims for bodily injury or property damage to a third party that arise from the construction operation. The policy must have a total limit of at least $1,000,000 per occurrence. Learn more about general liability coverage here.

Worker’s Compensation to provide coverage for injury to any employee working on the job. Coverage must be provided for all contractors and sub-contractors working on the job. If the owner is acting as the general contractor, they must provide proof of their own worker's compensation or a waiver of coverage where permitted by state law. For your protection, EVERY contractor and supplier on the job site should provide proof of worker's compensation and general liability insurance before beginning any work. In most states, an uninsured subcontractor is legally considered to be the owner's employee for worker's compensation purposes. If you employ an uninsured contractor and they get injured, you will be responsible for their claim. This is a potentially unlimited liability in addition to fines you may be charged for not providing worker's compensation insurance. There is no savings great enough to justify hiring an uninsured contractor.

Flood Insurance to protect against water damage. Depending on where your home is being built, you may be required to obtain flood insurance. IndyMac currently requires flood insurance for properties located in a Flood Zone A or V. To In some cases, flood coverage may be available as part of the builder's risk policy. If you are building in an identified flood plain, coverage will be provided separately. You may want to consider purchasing flood insurance if your property is near a creek, lake, pond, river or other body of water with the possibility of rising to reach your building. Most property policies do not include any flood coverage. The online quote request will allow you to request flood insurance if desired.

InsurancePoliciesOnline.com offers an easy to use web based application and purchase system to acquire the builders risk and personal liability insurance most commonly needed to comply with IndyMac's loan requirements. Start your application process online to be ready for your closing!