NAICS UNIVERSITY · Free research for insurance agents
New Housing For-Sale Builders
NAICS 236117 · United States · 2022 edition
This U.S. industry comprises establishments primarily engaged in building new homes on land that is owned or controlled by the builder rather than the homebuyer or investor. The land is included with the sale of the home. Establishments in this industry build single-family and/or multifamily homes. These establishments are often referred to as merchant builders, but are also known as production or for-sale builders.
Start the review with completed operations / construction defect.
For New Housing For-Sale Builders, the saved research highlights completed operations / construction defect, general liability on active job sites, subcontractor liability. Confirm how these arise in the actual operation, what controls are used and whether additional services change the proposed coverage.
Questions to ask
- How many homes do you expect to start and close in the next 12 months, and how many are currently under construction?
- What states are you actively building in, and do you have any projects in states known for active construction defect litigation?
- Are you building single-family detached, attached townhomes, condominiums, or a mix — and is any work multifamily or mid-rise?
- What exterior cladding systems are being used — particularly any EIFS, synthetic stucco, or moisture-sensitive assemblies?
- How much work is self-performed versus subcontracted, and do you collect and track certificates of insurance from all subs?
- Have you had any prior construction defect claims, HOA warranty demands, or litigation in the past five to ten years?
- Do you have any gaps in completed-operations coverage — periods when you were building and selling homes without continuous GL in force?
- Do you maintain model homes or completed-but-unsold inventory, and how are those currently insured?
Activities described by this code
Other activities to examine
- Building single-family houses for others as general contractors: 236115 — New Single-Family Housing Construction (except For-Sale Builders)
- Building multifamily residential buildings for others as general contractors: 236116 — New Multifamily Housing Construction (except For-Sale Builders)
- Remodeling or repairing existing houses and other residential buildings, either for others or on own account for sale: 236118 — Residential Remodelers
- Performing specialized construction work on houses or other residential buildings, generally on a subcontract basis: 238 — Specialty Trade Contractors;
- Constructing and leasing residential buildings on their own account: 531110 — Lessors of Residential Buildings and Dwellings
Census classification reference
For educational purposes only. AI-generated insurance research and automated logic can contain errors. Independently verify classification and coverage decisions.
Compare another operationInsurance operations research — draft
For-sale builders acquire land, develop lots, and construct new single-family and/or multifamily homes for sale to end buyers, with land included in the transaction. Day-to-day operations typically involve coordinating and managing subcontractors across multiple active job sites, handling permitting and inspections, maintaining model homes, and closing completed units to buyers. Unlike custom home builders working for a specific client, merchant builders carry all development and construction risk on their own account until sale.
Questions to investigate
- How many homes do you expect to start and close in the next 12 months, and how many are currently under construction?
- What states are you actively building in, and do you have any projects in states known for active construction defect litigation?
- Are you building single-family detached, attached townhomes, condominiums, or a mix — and is any work multifamily or mid-rise?
- What exterior cladding systems are being used — particularly any EIFS, synthetic stucco, or moisture-sensitive assemblies?
This insurance research was generated in April 2026. It has not received a complete human review. The October 12, 2026 audit checked codes and titles only, not descriptions or coverage assertions.