Builders Risk/Rehab

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If you are a homeowner building your first home, an investor remodeling a property, or a builder developing an entire subdivision; we have a builder’s risk coverage to meet your needs.

Single Structure, or “One Shot,” Policies

• Available for all residential single-family homes and commercial structures.
• Ideal for contractors who build or remodel.
• Policy can be written in the homeowner’s name if the builder qualifies for coverage.
• Agent issues a separate policy for each structure to be covered.
• One renewal policy can be issued.
• In most states, a minimum premium applies, (currently $300).

Remodeling

• Ideal for the remodeler who owns the existing structure or is required to provide coverage on an existing structure in the course of a remodeling project.
• Ability to insure existing structures on the same Builders Risk Plan policy.

Newly completed homes up for sale

• Coverage for vacant and unoccupied completed dwelling property of the firstnamed insured, previously covered under a Builders Risk policy.
• Flood and Earthquake coverages are available on unsold dwellings in certain states. Must have previously had Flood and Earthquake under the standard Builders Risk policy.

Purchaser Under Contract

• Coverage enables the home purchaser to occupy a dwelling up to 90 days pending closing while builder collects rent.
• Dwelling must have been previously insured under Builders Risk policy.
• List purchaser as Additional Named Insured.
• Values over $250,000 must be submitted for approval and rating.

Other Coverage Options
Several options are available to enhance our standard Builders Risk Plan policy. These options may be written in addition to Builders Risk coverage and are not available on a monoline basis.

Model Home Contents
• Designed for contents located in a model home on a blanket basis.
• Includes items in storage and in transit.

Trade-In
• Coverage for vacant and unoccupied completed dwelling property of the firstnamed insured, taken in trade or purchased to remodel and sell. All residential and commercial structures are eligible with no size limitations, subject to underwriting guidelines and restrictions. In general, structures under $10 million dollars (residential or commercial) can be written on the Builders Risk Coverage Form (40471). Commercial structures over $10 million can be written on the Commercial Builders Risk Coverage Form (40660).
• Builders must have two years’ experience unless otherwise qualified. Three years’ experience is required when requesting coverage for commercial structures with total estimated completed values greater than $3 million.
• Catastrophic limit is $5 million per policy on the Builders Risk Coverage Form.
• Policy may be issued in the name of the homeowner/mortgagee if the builder qualifies.

Eligibility
• Existing structures over 75 years old, greater than $1.5 million in value or undergoing structural changes require prior approval.
• Coverage will be limited to the original start period and may be renewed for one year. The structure can be written on the unsold dwelling policy for a third year of coverage.
• Property located on barrier islands or within 1,000 feet of tidal water 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, South Carolina and Texas.
• 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.
• Any fire site with total limits at risk exceeding $3 million requires prior underwriting approval for all structures within that fire site. A fire site includes all covered buildings under construction that are located within 100 feet of each other.

When coverage begins
• Coverage begins once any materials are delivered to the construction site. Materials are defined as the supplies and resources that will be part of the completed structure and include the foundation and footings.

When coverage ends
The following conditions will terminate coverage:


• Once the builder’s interest in the property ceases.
• Ninety days after occupancy of a single occupancy structure, unless building is being used as a model home, is being remodeled, or is being used as a model home leaseback and appropriate policy is issued.
• If the building is leased or rented to others. For multiple family buildings, when more than 50 percent is leased to or rented to others. For commercial structures, when more than 75 percent is leased to or rented to others.
• If the project is abandoned, with no intention to complete it.
• If permanent property insurance is in force or when the property is accepted by the ownerIf permanent property insurance is in force or when the property is accepted by the owner or buyer.

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