If an insured is building a new home, are they eligible for a homeowners policy during construction?

An insured can indeed obtain a homeowners policy during the construction of a new home. This type of policy is often referred to as a "builder's risk" or "course of construction" policy, which provides coverage for homes that are under construction. Insurers recognize that homes in the building phase can face various risks, such as fire, theft, or vandalism, which makes it important to have coverage in place to protect the investment.

Typically, the homeowners policy or builder’s risk policy will address the unique risks associated with construction, including protecting the structure and materials from damage. Therefore, the option indicating eligibility for a homeowners policy during this phase is correct because it acknowledges the necessity of insurance coverage to mitigate risks associated with building a new home.

In contrast, policies designated for completed homes or rental properties specifically cater to different circumstances and risk profiles, reflecting a misunderstanding of insurance applicability during the construction phase.