Where Builders Risk Meets Personal Lines

Transcription

1 Where Builders Risk Meets Personal Lines

2 Presenter Introduction Mary Stiglic, CIC, Marketing Manager More than 18 years experience with builders risk Licensed property and casualty agent Holds CIC designation 2

3 Meet US Assure We manage, distribute and service programs for leading carriers in the construction and property insurance market. We help our clients assure success by realizing opportunity and growing revenue. 3

4 Connecting Opportunity for Distributors The Right Timing The Right Coverage The Right Solution Agents and Brokers: Looking to match opportunities with the best solutions Connector: Providing access to builders risk and property programs And Other World Class Carriers: Looking to provide solutions to new opportunities 4

5 What is Builders Risk Insurance? Builders risk insures a structure while under construction. Its coverage protects insurable interest in materials, fixtures and/or equipment to be installed A standalone builders risk policy does not provide coverage for workplace accidents and injuries or liability. The policy is often required to comply with government regulations or as a condition to meet banking or other contractual agreements. 5

6 Builders Risk Plan insured by Zurich Residential and commercial new construction, remodeling and installation projects of any size and value. Rate, quote and issue most policies online in minutes Many coverages are automatically included with the option to increase limits Direct bill and premium payment installment options Available nationwide on an admitted basis 6

7 Policy Options Summary Online Issuance Policy Type Target Audience Project types Policy Issuance Billing Single / One Shot Owners or builders Residential up to any size and value, and commercial structures up to $10 million in value; Rate, quote and issue online in minutes Direct billed to the insured new construction, remodeling and installation Single / One Shot commercial projects valued at more than $10 million Owners or builders Commercial over $10 million; new construction, remodeling and installation Application completed online or through paper submission Direct and agency single policy bill options 7 Residential Reporting Form Builders with multiple project starts per year New construction and renovation projects with no existing structure Rate, quote and issue online in minutes Premium submitted by insured based on activity during the period

8 Policy Options Summary Manual Issuance Policy Type Target Audience Project types Policy Issuance Billing Commercial Reporting Form Blanket Deposit Premium Installation Blanket Builders typically building similar commercial structures Builders with 50* or more project starts per year *As few as 25 will be considered Trade contractors Large commercial projects over $10 million Residential and commercial structures All types of installation residential and commercial Application completed online or manual application Application completed online Application completed online or manual application Billed to the agent/broker Estimated annual premium Up to 8 interest free installments Direct billed to the insured 8

9 Residential and Commercial Structure Eligibility Custom Homes Tract Homes Modular Homes Commercial Structures 9

10 Who Needs a Builders Risk Insurance Any individual or company with a financial interest in a construction project Property owner Real estate developers General Contractor 10

11 Builders Risk Policy Benefits for Homeowners 1. Option for term extensions and renewals 2. Higher coverage limits 3. Coverage for remodeling 4. Management and oversight 5. Minimize claims reporting to homeowners insurance provider 11

12 Insuring Total Completed Value (TCV) Total of all costs associated with the building and designing of the covered property, including Includes labor, overhead, materials and building profit (when necessary) Excludes land cost Review construction agreement or cost breakdown to verify TCV 12

13 Builders Risk Coverage Highlights Theft of building materials Property damage Vandalism Fire or lightning Arson Collapse Windstorm or hail Property in transit Property at a temporary storage 90 day after occupancy clause Property owned by subcontractors, subsubcontractors, suppliers Broad mortgagee language Waiver of coinsurance if loss is less than $25,000 13

14 Builders Risk Coverage Highlights 14 Additional Coverage and Built-In Sub-limits Scaffolding $50,000 Scaffolding Re-erection $25,000 Pollution Clean-up $25,000 Debris Removal $50,000 Valuable Papers $50,000 Back-up or Overflow of Sewers, Drains or Sumps $25,000 Ordinance or Law $1,000,000 Property at a Temporary Location $25,000 or 5% of TCV Property in Transit $25,000 or 5% of TCV Fire Department Service Charge $25,000 Reward Up to $25,000

15 Contract Change Order Endorsement Changes that increase the value of the structure Examples: material upgrades, design changes, etc. New construction and remodeling projects Purchase at policy inception or during the course of construction Coverage available in increments of 10, 20 and 30 percent Reduce co-insurance penalties and error and omission claims 15

16 Other Residential Builders Risk Optional Coverages Better Green Soft Cost Quake and Flood (where available) 16

17 Underwriting Guidelines Purchase policy in the name of the owner or builder Two years of related project experience required Construction up to 30% complete Over 30% complete subject to underwriting approval Binding Authority $3 million, new construction, protection class 1-8 $1 million, new construction, protection class 9-10 See rate pages for all states specific guidelines and authority 17

18 Remodeling Appetite Basic Remodel Changes to interior, (e.g. replacement of interior fixtures, cabinets, flooring) No changes to exterior Minor Structural Changes to interior and exterior, (e.g. doors, windows, roof replacement, ground floor additions, HVAC, plumbing, and electrical) Major Structural 18 Repair, replacement or removal of load-bearing walls or foundation of stories, stairways and elevators

19 Remodeling Policy Overview Single structure policy if covering existing structure Multiple policy term options Policy extensions available Additional coverage options Better Green Change Order Expediting Expenses Flood and Quake (where available) Soft Cost 19

20 Remodeling Policy Underwriting Guidelines Two years of related project experience required Existing structure coverage will be based on Actual Cash Value Renovation limit must be at least 20% of the existing structure value if existing structure coverage is needed 20

21 Remodeling Policy Underwriting Guidelines Ongoing Construction Activity Clause Form HBIS-37 Coverage will be limited to named perils if no construction activity has been performed within 60 consecutive days before the loss 15% penalty applied to the loss amount Construction activity defined as repair, replacement or installation including painting 21

22 Ineligible Remodeling Risks Moving or lifting structures off the entire foundation Structures on the historic register 22

23 Construction Project Coverage Comparison Building materials Theft of building materials Property in transit Property at a temporary storage Flood, quake and windstorm Backup of sewer and drain Damage to paved surfaces Debris removal Lawns, trees, shrubs and plants Change in total completed value 23

24 Issue a Builders Risk Policy Online in Minutes

25 Accessing the Policy Issuance Platform Agent123 25

26 Policy Management Dashboard Resources found on the policy management dashboard Locate the policy management dashboard on the main page of the website Use the menu at left to quickly start an application Orange construction blocks indicate builders risk options 26

27 Before you start the application Gather the following information before submitting a builder risk application: Named insured information Builder information Building information 27

28 Application Agency information Named insured information Name Address Form of business Business description 28

29 Builder Information Screen Builder name Years of building experience Number of structures built or remodeled in prior 12 months Projected number of structures built or remodeled for the next 12 months Any losses over $10,000 in previous three years 29

30 Property Information Screen State property is located Producing agent information New or remodeling project Is project residential or commercial If new construction One shot Reporting form Policy effective date 30

31 Property Information Screen Cont. Property address Property construction Protection class Number of stories Intended occupancy Square footage 31

32 Property Information Screen Cont. Property address Property construction Protection class Number of stories Intended occupancy Square footage 32

33 Property Information Screen Cont. Has project started? Expected completion date Is there a sales contract? Is it a modular structure? 33

34 Coverage Information Screen Project value: total completed value minus land Project deductible Do you need to adjust the building sub-limits? 34

35 Optional Coverage Information Screen Green building endorsement Expediting expenses Change order endorsement Earthquake Flood Hot testing Soft cost 35

36 Optional Coverage Information Screen Change order option 10% 20% 30% 36

37 37 Additional Interest Screen

38 Issue Summary Screen View the application Generate proposal Select billing option Issue policy 38

39 Billing Options Up to nine installments available Payment options based on total premium Up to $500 - pay in full 39

40 40 Builders Risk Proposal

41 Issue and Manage Policies Builders risk policy and forms are generated in PDF Create certificates Create endorsements Renew policy 41

42 Win a Fantasy Florida Getaway! Enter your office: myflgetaway.usassure.com Includes: FREE vacation for two to Ponte Vedra Beach, Florida Accommodations at a five-diamond resort destination How to Win: Submit and issue commercial builders risk valued up to $50M

43 How to Get Started Register for instant access at usassure.com. No minimum commitment required Competitive compensation Receive instant access to quote and issue builders risk coverage online 43

44 Your Partner for Builders Risk Insurance Quote and issue policies online usassure.com Contact our 50+ specialists (800) Join a local event or another online session usassure.com/events Follow us Linkedin.com/company/us-assure 44

45 About Our Products This presentation is intended as a general description of the types of insurance products available through US Assure. Any description of policy provisions is intended to give a broad overview of coverages and does not revise or amend a policy. The policy contains the specific details of the coverages, terms, conditions and exclusions. Some products may not be available in all states and may only be offered on a non admitted basis. Product availability is subject to change. Please contact an underwriter for a risk specific inquiry. 45