Home Builder Insurance in Washington State

Home builders in Washington carry some of the longest-tail liability in all of construction. Under Washington's construction defect statute (RCW 64.50), homeowners have up to six years to bring claims for defective residential construction. That means the house you close on today could generate a lawsuit in 2032. Structural cracks, water intrusion through improperly flashed windows, foundation settling, and roof failures are the types of defects that surface years after completion — and when they do, the home builder is typically the primary defendant regardless of which subcontractor actually performed the defective work.

The scope of a home builder's liability is enormous because you're responsible for the entire project. You select and coordinate subcontractors for framing, electrical, plumbing, HVAC, roofing, and finishing trades. If the framer cuts corners on load-bearing walls, if the roofer improperly installs flashing, or if the plumber doesn't properly slope waste lines, you bear the ultimate responsibility. Washington courts have consistently held that general contractor home builders cannot simply point to their subcontractors — the duty to deliver a defect-free home falls on you. This makes your subcontractor management practices and certificate of insurance requirements critically important.

Builder's risk insurance is essential during the construction phase but is a coverage most home builders don't think about until they need it. A partially framed home is vulnerable to windstorms, fire, theft of materials, and vandalism. Washington's wet climate adds constant moisture exposure during the months a home is open to the elements. A standard general liability policy does not cover damage to the structure you're building — that's what builder's risk provides. Without it, a fire or storm during construction means absorbing the full cost of materials and labor to that point.

Code violations and buyer disputes add further complexity. Washington's building codes are regularly updated, and local jurisdictions can impose additional requirements. A failed final inspection, an overlooked energy code requirement, or a buyer who claims the home doesn't match the plans can all trigger claims. Project delays caused by weather, permit issues, or subcontractor no-shows can lead to breach-of-contract suits from buyers, especially in hot markets where purchase agreements include completion deadlines. The financial stakes of home building in Washington demand comprehensive insurance coverage from the first permit application through the final year of the statute of limitations.