Planning to build your dream home in Alpharetta, Georgia?
Worried about how to protect it before it’s even finished?
When you’re investing $750,000 to $3 million—or more—into a custom-built home, the last thing you want is to find out too late that your insurance coverage is insufficient. From builder’s risk policies to high-value homeowners insurance, understanding your coverage needs before, during, and after construction is essential.
In this article, you'll learn:
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The different types of insurance needed throughout construction and beyond
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Why standard policies might leave gaps for custom homes
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How to navigate builder’s risk, high-value coverage, and lender expectations
Insurance for Custom Homes in Alpharetta Follows Your Construction Timeline
Building a luxury custom home involves multiple phases—and your insurance must evolve with each step.
Phase 1: During Construction – Builder’s Risk Insurance
Standard homeowners insurance won’t cover a property under construction. Instead, you need builder’s risk insurance, which protects the physical structure, materials, and equipment against fire, theft, weather damage, and vandalism.
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Cost Range: Typically 1–5% of the total project cost
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Example: For a $1M home, expect to pay $10,000–$50,000
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Who Buys It? Either the homeowner, contractor, or developer—check your construction agreement
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Why It Matters: Even if your contractor holds a policy, it may not protect your full interests. Consider a “Course of Construction” policy for broader protection, including liability and stored materials.
Phase 2: After Construction – Transitioning to Homeowners Insurance
Once construction wraps, you must shift to a permanent homeowners policy before moving in.
Some insurers offer seamless conversion policies, transitioning from builder’s risk to homeowners coverage without starting a new plan. This reduces gaps and avoids double premiums.
Why Custom Homes Require More Than Standard Insurance
Custom-built homes aren't “cookie cutter,” and neither are their insurance needs. Here's why:
Higher Replacement Costs
Custom materials and craftsmanship cost more to replace. Standard insurance often only covers the cost to rebuild using basic materials, which means:
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Your imported marble might be replaced with ceramic tile
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Handcrafted cabinetry could be downgraded to prefab wood
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Architectural features might not be replicated at all
Unique Features Demand Specialized Coverage
Custom homes often include:
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Specialty millwork and high-end finishes
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Smart home tech and media rooms
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Outdoor living spaces (pools, kitchens, landscaping)
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Multi-car garages and outbuildings
These increase both rebuilding costs and liability exposure. For example, a swimming pool adds risk for injuries and may affect your premium.
Comparing Standard vs. High-Value Homeowners Insurance
Most custom homes in Alpharetta qualify for high-value homeowners insurance—and that’s a good thing.
| Feature | Standard Policy | High-Value Policy |
|---|---|---|
| Coverage Limits | Capped at policy max | Guaranteed replacement, even if costs exceed estimate |
| Valuation | Depreciated replacement | Full matching materials/craftsmanship |
| Contents Coverage | 50–70% of home value, strict sub-limits | Higher limits, fewer restrictions |
| Liability | $100k–$300k | $500k–$1M, with umbrella options |
| Claims Handling | Multiple adjusters | Dedicated specialist, one point of contact |
Bonus: High-value policies often include additional living expense coverage, broader protection for valuables, and extended replacement cost—even beyond policy limits.
How Much Will Custom Home Insurance Cost?
Premium Estimates for Alpharetta
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Standard Homeowners Insurance: ~$2,400 annually for $300k coverage
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High-Value Home Insurance: ~$5,100 annually for $750k+ coverage
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Custom Homes in Alpharetta: $1,800–$2,700/year for typical coverage ranges
What Affects Your Rate?
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Home’s unique materials and layout
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Location and proximity to fire services
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Use of fire-resistant construction (e.g., ICFs)
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Security and alarm systems
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Credit score and past claims
Legal Requirements and Lender Expectations
Georgia State Law
Homeowners insurance is not legally required—but if you’re using a mortgage, your lender will require:
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Full replacement cost coverage
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Liability coverage (usually $100k+)
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Flood insurance if located in a flood zone
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Proof of insurance 15+ days before closing
Important: Most lenders require insurance equal to at least 80% of your home’s replacement cost to qualify for full coverage in a claim.
Local Insurance Factors Unique to Alpharetta
Building Codes
Alpharetta enforces strict building codes and permitting. Your insurance should include ordinance or law coverage, which pays to rebuild up to current codes after a loss.
Weather Risks
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Thunderstorms, hail, and the rare tornado
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Wind and storm damage (not always fully covered by base policies)
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Flood zones (evaluate carefully—even if optional)
HOA Requirements
If your home is in an HOA neighborhood, there may be additional insurance requirements or architectural guidelines to consider.
Insurance Action Plan for Custom Homeowners
Before Construction
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Secure builder’s risk insurance
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Review your contractor’s policy and fill gaps
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Document materials and features in use
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Set up transition plan for permanent homeowners insurance
During Construction
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Stay in touch with your insurance agent
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Reassess coverage as project value increases
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Photograph progress and custom elements
After Completion
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Switch to permanent policy before move-in
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Schedule a professional appraisal
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Store photos, receipts, and plans in a secure file
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Reassess annually as market values and coverage needs change
Work With Insurance Experts Who Understand Custom Homes
Don’t go it alone. Insurance for custom homes is more complex—and more important—than for standard properties.
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Choose independent agents familiar with high-value policies
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Ask about risk assessments, claims support, and local Alpharetta experience
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Look for providers that assign dedicated specialists—not call centers
Conclusion
You’ve worked hard to build your custom dream home in Alpharetta—now protect it like it matters.
Builder’s risk insurance covers you during the build, but you’ll need comprehensive high-value homeowners coverage to ensure long-term protection. From unique features to rising reconstruction costs, standard policies may leave dangerous gaps.
At the end of the day, you didn’t build a standard home—so don’t settle for standard coverage.
Now that you’ve learned how to protect your investment before and after construction, your next step is to consult with a local insurance expert who understands Alpharetta’s custom home market.
The right coverage today means peace of mind tomorrow.
