February 22, 2012
Basic Eligibility
The Builders Risk Coverage Form (40471) provides coverage for residential and commercial structures with values up to $10 million. The Builders Risk Plan is flexible -- specially trained underwriters are available to assist with coverage for structures that fall outside these general guildelines. In general, we have capacity for risks up to $50 million. Call for assistance. All policies are subject to certain underwriting guidelines and restrictions.
Builders must have two year experience unless otherwise qualified. Three years experience is required when requested coverage for commercial structures with total estimated completed values greater than $3,000,000.
Catastrophic limit is up to $5 million per policy. Higher limits are available with underwriting approval.
Policy can be issued in the name of the homeowner if the builder qualifies.
Underwriting Guidelines
Structures with total estimated completed values greater than $1,000,000 (greater than $500,000 in Florida, California and Texas) located in protection classes 9 and 10 and all structures with values over $10,000,000 require prior approval. Submit Increased Limits Questionnaire or Commercial Builders Risk Application.
Construction cannot be more than 30% complete at time of the policy's effective date.
Special coverage is available for structures that are more than 30% complete.
Where significant improvements will be made, existing structures over 75 years old are eligible.
Property located on barrier islands may be referred for coverage if wind and hail is placed in a wind pool. The states that provide wind and hail pools are Florida, Georgia, Mississippi, North Carolina and South Carolina.
Coverage on property located within 1,000 feet of tidal water or on a barrier island cannot be written unless eligible for a wind pool.
Coverage will be limited to the original start period and may also be renewed for up to two additional years. Rating and underwriting guidelines apply.
Other Important Information
The policy is issued by our agency and we have binding authority of up to five days, within underwriting guidelines.
Policy can be issued on a reporting form (monthly or annual), "one shot," or deposit premium/installment basis. Rating and underwriting guidelines apply. Fleet policies are also available.
$1,000 deductible is standard on all policies. In most states, there is a $350 minimum premium on one shot policies. Rating and underwriting guidelines apply.
Coverage for remodelers, purchasers under contract, model homes, model home contents, tools and equipment and trade in/unsold dwellings is available. Rating and underwriting guidelines apply.
Business Income coverage, Wavier of Coinsurance and manuscript endorsements are available for commercial structures.
For assistance with special eligibility and coverage, underwriting, rates and policy processing, consult our agency for local calls we can be reached at 784-2587 for long distance 1-800-658-9449.