Those who are buying a newly-built home may want to consider adding an errors and omissions rider to their insurance policy. Errors and omissions insurance is designed to cover the loss a homeowner endures whenever the builder has made errors during construction that result in additional repairs in order to correct. It can also cover flaws in the building's design that was made by an architect during the planning phase. Errors and omissions insurance might be needed whenever a home fails to pass a building inspection due to flaws in the construction. Homes that do comply with local building codes often require a great deal of renovation before they can be habitable. An errors and omissions policy would pay for the cost of these repairs so that the homeowner would not have to bear the cost of reconstruction.