Builders Risk Basics

Transcription

1 Builders Risk Basics

2 Builders Risk Overview

3 Builders Risk Overview Builders Risk is an Inland Marine property line of business. Sometimes referred to as Course of Construction Protects insurable interest in materials and fixtures used during a construction project should the items sustain physical loss or damage from a covered cause. The term builder is misleading because insureds can include not only the contractor performing the work, but the ultimate owner. 2

4 Total Estimated Completed Value All costs associated with the building and designing of the covered property including labor, materials and overhead expenses incurred due to the construction of a building or structure. - Review form for a co-insurance clause - Consider change orders and other insurable values - Determine overhead and profit Does not include the value of the land. You should include the added value of excavation and landscaping work. 3

5 Completed Value Completed Value Selling Price Land Value 4

6 Various Forms Per project/completed value form A policy issued for the completed value of the project. (one location/one project) Reporting form Contractors who have numerous jobs going on simultaneously can be used to insure all of them under a single form. 5

7 Covered Cause of Loss Most builders risk policies are written on an all-peril basis with the more commonly term referred to as a special cause of loss (or perils) form. On this basis the coverage applies to physical loss or damage from any cause of loss unless the loss is limited or specifically excluded. READ THE COVERAGE FORM AND ALL ENDORSEMENTS! 6

8 Deductible A dollar deductible applies to physical loss or damage to the covered property. This is referred to as the AOP deductible or all other perils deductible. Physical damage from earthquake, flood, named storms or windstorm may have a dollar amount or a percentage. In some cases a catastrophe limit may apply for earthquake or flood. READ THE COVERAGE FORM AND ALL ENDORSEMENTS! 7

9 Various Structures Residential Single Family Dwelling 1-4 Family Structures Commercial Any structure or building other than defined as residential. - Schools - Hotels - Apartments / condos - Hospitals - Restaurants 8

10 Rating and Remodeling Builders Risk Rating Construction type Occupancy Protection Class Exposure (location) Remodeling Scope of work Remodeling with Existing Structure Age of structure Condition of structure Major structural remodeling will require additional underwriting information 9

11 Schinnerer s Builders Risk Program

12 Schinnerer Builders Risk Program Ease of doing business Quote, bind and Issue online 15% less clicks than competitors Underwriting holds cleared quickly Builders Risk program New construction and remodeling projects Residential and commercial structures Flexibility on terms and coverages Coverage form includes 16 automatic additional coverages Dedicated Builders Risk Team 11

13 Schinnerer Builders Risk Program 16 Automatic Coverages 12

14 Online Broker Portal Quote, Issue and Bind in Minutes Quote new residential/commercial construction and renovations/remodels 15% fewer underwriting questions than the competition 16 built-in core coverages No underwriting holds for new construction up to $3 million Direct bill or broker bill 13

15 Please use the Questions chat box to submit a question 14

16 We re Here to Help You! Jeff Benson Senior Underwriting Manager (904) Donna Berry Senior Underwriter (904)

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