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TYPES OF BUILDERS RISK / COURSE OF CONSTRUCTION PLANS

TYPES OF COURSE OF CONSTRUCTION POLICIES

Builders Risk aka Course of Construction

Athena Insurance and Financial Services shops your Builders Risk Plan with a variety of Insurance Companies. Below is an example of some of our Insurance Carrier's that Specialize in Builders Risk.  In this section we wish to point out some of the Highlights and features of Builders Risk policies. Note: Not all features are available in all States nor with all Insurance Carriers. Coverages, Exclusions, Conditions and more can change without notice posted on this site. This information is meant to cover Builders Risk Policies in "general" thus your "particular" circumstance and eligibility may differ. Contact one of our agents for more information or complete a quote request clicking on this icon.

  1. Great American Insurance Group - Residential and Commercial
  2. Lexington Insurance Company - Residential Builders Risk
  3. Navigators - "One-Shot" for Residential and Commercial
  4. Zurich - "One Shot or Monthly Reporting Form" for Residential and Commercial

* In the table below we depict some of the features common to many of the Builders Risk policies but they can vary from State to State and from Company to Company. This list does not constitute the entire policy forms, contract or conditions.

ONE SHOT TYPE POLICIES*

REPORTING FORM TYPE POLICIES*
1. - Who Generally purchases a "One Shot " type of policy?

1. Builders, Contractors and Developers that have one structure or a series of structures that will generally be completed within one year. Many Insurance Carriers will allow for a single "one year term" renewal provided there is no lapse in coverage. I good rule of thumb is six structures per year or less.

The premium is paid in advance and is 100% earned at inception. NO REFUNDS.

 A. - Who Generally purchases a Reporting Form Policy? A. - Builders, Contractors and Developers that are constructing more than a few structures and work will vary in terms of start dates and time of completion.. Rather than purchase a policy for each structure for the year they have their staff comply with the rules of when coverage begins and ends by reporting on a monthly form and are 100% responsible for reporting all starts on time for coverage to be effective. Premium are paid monthly and determined by staff according to the reporting form inventory. Most carriers allow for "up to a 30 day " window to report new start ups. Our Staff will work with your team to assist in the training. The advantage here is that you only pay for what is in inventory from month to month.
2 .- Will Builders Risk Policies Cover someone getting injured on the site? Or does it include General Liability? 2. - NO! A big no! Ask one of our Agents about the need for Workers Compensation Insurance coverage. Workers Compensation is not part of any Builders Risk Policy. No on General Liability also. A separate policy is needed for this also. B - . Will Builders Risk Policies Cover someone getting injured on the site? B. - NO! A big no! Ask one of our Agents about the need for Workers Compensation Insurance coverage. Workers Compensation is not part of any Builders Risk Policy. No on General Liability also. A separate policy is needed for this also.
3. - Can I get special pricing if I am a larger contractor? 3. - Considerations can be provided with some Insurance carriers. Your Company Experience, claims history, building to be constructed, location, inventory, size of account and more will plan an important factor in receiving such consideration. Our staff will work with you to do what we can. We keep our pencil sharp and run a tight ship. C. - Can I get special pricing if I am a larger contractor? C. - Considerations can be provided with some Insurance carriers. Your Company Experience, claims history, building to be constructed, location, inventory, size of account and more will plan an important factor in receiving such consideration. Our staff will work with you to do what we can. We keep our pencil sharp and run a tight ship.
4. - What about coverage for materials on site and in transit?

4. -Yes. Most Policies have a "boiler plate of coverages" and vary depending on if the policy is for Ground up New construction or Remodeling of an existing structure.  Besides coverage to the structure either on a replacement cost basis or actual cash value basis or both..here are some of the common defaults

Debris Removal
Fire department service charge
Pollution clean up and removal
Reward
Scaffolding re-erection
Property at temporary Storage location
Property in Transit
Valuable papers and records

Remember not all carriers provide the like coverages in all States. Ask your Agent to review  your quote for you. The limits on coverage for the default coverages listed above can be change and increased to an amount that meet your needs with Company approval

 D. - What about coverage for materials on site and in transit?

-Yes. Most Policies have a "boiler plate of coverages" and vary depending on if the policy is for Ground up New construction or Remodeling of an existing structure.  Besides coverage to the structure either on a replacement cost basis or actual cash value basis or both..here are some of the common defaults

Debris Removal
Fire department service charge
Pollution clean up and removal
Reward
Scaffolding re-erection
Property at temporary Storage location
Property in Transit
Valuable papers and records

Remember not all carriers provide the like coverages in all States. Ask your Agent to review  your quote for you. The limits on coverage for the default coverages listed above can be change and increased to an amount that meet your needs with Company approval
5. - How high of a structure limit can you provide?  What is the minimum premium? 5. -Our regular limit is $10,000,000. We can go higher with "submit" to company for review.  The minimum premium for Builders Risk is $375.00 Few structures will ever meet this minimum. E. - How high of a structure limit can you provide?  What is the minimum premium? E. -Our regular limit is $10,000,000. We can go higher with "submit" to company for review.  The minimum premium for Builders Risk is $375.00 Few structures will ever meet this minimum.
6. -What kind of coverage do I get with a structure that is being remodeled?

6. - The existing structure's coverage is determined on an ACV basis. (Actual Cash Value less depreciation) The Improvements are on a Replacement Cost basis...no depreciation.  You must insured the existing structure for at least 80% of current construction replacement cost. 

 F. - What kind of coverage do I get with a structure that is being remodeled? F. - The existing structure's coverage is determined on an ACV basis. (Actual Cash Value less depreciation) The Improvements are on a Replacement Cost basis...no depreciation.  You must insured the existing structure for at least 80% of current construction replacement cost. 
7. - Optional Coverages
  • Better Green Endorsements
  • Change Order Endorsements
  • Earthquake
  • Flood
  • Inflation
  • Higher Deductible Credit Endorsement
 G. - Optional Coverages
  • Better Green Endorsements
  • Change Order Endorsements
  • Earthquake
  • Flood
  • Inflation
  • Higher Deductible Credit Endorsement
8. - Can I get coverage for a home that is being traded-in during our build a new home for the Client?

8. - In General here are a list of some types of business that "may be" written if there is supporting business. (again this may differ from company to company)

Purchaser Under Contract - This policy provides a builder with coverage enabling a purchaser to occupy a dwelling up to 90 days pending closing if rent is collected. The dwelling must have been previously carried by the carrier under a Builders Risk Policy. **

Model Home Contents -Mono-line Policy Minimum premium $375.00 $1,000 standard deductible **

Contractors Equipment - See equipment

Trade-in: - A trade-in dwelling is vacant dwelling that has been taken in trade by the insured for credit on a new house constructed.  **

Unsold Dwelling / Third Year - Not all carriers provide this. No lapse is allowed.

 H. - Can I get coverage for a home that is being traded-in during our build a new home for the Client?

H. - In General here are a list of some types of business that "may be" written if there is supporting business. (again this may differ from company to company)

Purchaser Under Contract - This policy provides a builder with coverage enabling a purchaser to occupy a dwelling up to 90 days pending closing if rent is collected. The dwelling must have been previously carried by the carrier under a Builders Risk Policy. **

Model Home Contents -Mono-line Policy Minimum premium $375.00 $1,000 standard deductible **

Contractors Equipment - See equipment

Trade-in: - A trade-in dwelling is vacant dwelling that has been taken in trade by the insured for credit on a new house constructed.  **

Unsold Dwelling / Third Year - Not all carriers provide this. No lapse is allowed.
9. - What if I have a prior claims(s) can you still offer me a policy? 9. - We can certainly take a look at up to three claims depending on the circumstances I. - What if I have a prior claims(s) can you still offer me a policy? I. - We can certainly take a look at up to three claims depending on the circumstances
10. - What if I have a lapse? 10. - Not good! One or two days with proof of no loss...maybe. J. - What if I have a lapse? J. - Not good! One or two days with proof of no loss and a no loss letter ...maybe.
11. - What if I already started the project? 11. - It depends on how far along you are with the project as a percentage and how long you have taken. One question that you must be a able to answer is why did you go without insurance in the first place? We can consider projects with up to 30% completed on a one shot. ** K. - What if I already started the project? Conditionally... an Annual Reporting form requires that all new starts be reported within 30 days or the closest monthly reporting for due date.
 ** Zurich Insurance Builders Risk Policy
Contact Name Are you a new business?
Company Name Do you currently have insurance?
Primary Construction / Professional Class Do you need a quote?
Secondary Class Current Insurance Carrier
Other Class Current Expiration Date
E-mail Current Premium Amount
Primary Phone
(###) ###-####		 Policy form on expiring policy is: Learn more...
Fax Number Policy form one year prior
Cell Number Policy form two years prior
Best time to call How did you get referred to us?

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