Bind builder's risk + line up where the family lives

Builder's Risk insurance

A Course of Construction / Builder's Risk policy covers the structure during construction (fire, theft, vandalism, weather damage, sometimes more). Lender-required if you're financing.

• Cost for an addition: $800–$2,500 for a 6–12 month policy, or 1–4% of completed value annually.
• Notify your homeowner's carrier before construction starts — many policies require disclosure or attach a vacancy/construction endorsement.
• Vacancy clauses matter: if the family moves out for the build, your standard homeowner's policy probably restricts coverage after 30–60 days of vacancy. The Builder's Risk policy bridges that gap; confirm in writing.

Where the family lives during the build

For a second-story addition, the practical realities:

• Lift options (B or C from step 2.2): absolutely have to move out for the entire build. The house is on cribbing for weeks.
• Retrofit options (A): technically possible to stay during framing through early MEP, but most families move out anyway. The ceiling above your heads is being removed; dust, noise, and access disruption make the house effectively unlivable.
• Honest range: 6–12 months out of the house for the typical project.

Three temporary-housing patterns

1. Furnished month-to-month rental. The most flexible. Seattle furnished one-bedrooms run $2,500–$4,500/mo; three-bedrooms $4,500–$8,000/mo. Total: $15,000–$60,000+ depending on family size and duration.
2. Long-term unfurnished lease. Cheaper monthly but has a fixed term that may not match the build schedule, and you have to move twice (in and out) plus furnish it.
3. Stay with family. Free, friction-rich, occasionally feasible.

Financing draw schedule

If you're using construction financing, align the lender's draw schedule with the GC contract milestones. The standard sequence for a second-story addition:

1. Initial draw at mobilization (or covered by your deposit).
2. Abatement complete.
3. Foundation retrofit / lift complete.
4. Framing / dry-in.
5. MEP rough complete.
6. Drywall complete.
7. Substantial completion / Certificate of Occupancy.

Each draw needs a lender inspection. Build in a few business days of lag at each milestone — the GC mobilizes the next phase only after the draw is funded.

A note on financing

HomePlan doesn't provide financial advice. The patterns most Seattle addition owners describe:

• Cash-out refi during low-rate years was the most common path; less attractive now.
• HELOC is the most flexible product for additions because draw timing can match the build.
• Renovation-perm loans (one-time-close construction-perm) bundle the construction loan and the permanent mortgage; useful if you don't already have a mortgage you want to keep.

Verify any lender or mortgage loan officer at NMLS Consumer Access.