is required by lenders on construction loans. It’s basically the same thing as your homeowners insurance and covers losses from the usual suspects…fire, wind, earthquake …during construction. The cost is about the same as homeowners insurance…EXPENSIVE.  Typically, insurance companies require coverage in the amount of the cost of construction, but First Bank only requires coverage in the amount of the loan. We opted to cover the loan amount only. Why… for one, the annual premium is owed whether you finish in six months or a year. It is not prorated like homeowners policies. And…at the pace Cap is going… the shell will be done in January. We figure to finish the interior by April at which time we will convert to a homeowners policy at full coverage. This all sounds simple enough, but for one thing…no insurance company would issue a policy for less than full construction cost…except…First Insurance, subsidiary of First Bank. Not the best rate but still cheaper than the others!