A new home requires much research and a significant financial commitment. If you decide to have a home built rather than buy an existing one, your options are either a production home or a custom-built one.
Key differences between production and custom homes
You need to consider some key points to make an informed decision when moving into your dream home, even though the choice ultimately boils down to your preferences and what you seek.
Production homes
Production homes are mass-produced residential units that use a standard house plan. Although the design and construction are standardized, most builders offer a range of basic or upgraded options for flooring finishes, fixtures and appliances. Some offer energy-saving options such as smart thermostats, energy-efficient windows and ENERGY STAR® appliances.
Because builders use the same designs for production homes, they can buy materials in quantity, and the construction process is similar for each house. This economy of scale means that production homes generally cost less per square foot than custom homes.
Production homes are frequently seen in bigger planned communities and have common areas such as pools, parks and community centers that improve the quality of life and provide social activities.
Custom homes
The homeowner decides every detail of a custom home, from the overall design to the finishes. A custom home can be based on a plan the homeowner buys or designed specifically for the homeowner. Because the homeowner works closely with the builder and the builder sources all materials, custom homes cost more per square foot than production homes.
Custom homes are tailored to the homeowner. A builder can optimize the ergonomics of closets, raise the dishwasher off the floor or lower counter heights to suit your needs. Energy-conscious homeowners can include features such as solar panels and geothermal heat.
Ensure proper coverage for your dream home
Whether you build a production home or a custom one, comprehensive insurance guarantees security and ensures preparedness for any unforeseen circumstances.
Production homes are often easier to insure, whereas underwriters often have to more closely scrutinize insurance applications for custom homes because of their higher value and unique features. For production homeowners, ensure your policy covers the dwelling, personal property and living expenses if you can't occupy the home because of damage. For custom homeowners, an accurate and detailed evaluation of all custom features can guarantee sufficient coverage.
Modify your policies and protect your home by working with your Gallagher personal insurance advisor. You can also extend coverage policies by including adequate liability coverage tailored to your needs. Your dream home deserves the best protection!