The Construction Industry Is Building Momentum
As the U.S. economy continues to improve, new construction projects are starting up at a rate that hasn’t been seen since before the recession of 2008.
According to construction analysis firm Oldcastle, Inc., the construction industry will see an overall growth of 5 percent in 2018 with 9 percent growth in single-family home construction. The U.S. Department of Housing and Urban Development’s recently released new home construction report, indicated that, in December of 2017 alone, 1.192 million new home construction projects were started! That means over 1 million projects are in need of insurance policies to cover their exposures.
One of the main exposures these new construction projects face is the loss to the building materials and equipment used in the project during construction. To protect against the potential financial loss that may occur from a number of causes, the contractor or owner of the project should secure a Builder’s Risk policy. One such example of loss follows below:
The insured was contracted to act as a general contractor working on a three-story office building where construction had started eight months prior. A subcontractor was welding a stair system to the roof access when an ember from the torch ignited a fire. The fire caused considerable damage to the roof, sheetrock, insulated ductwork and two heating units. The fire department’s use of water to extinguish the blaze also caused limited water damage.
With the needs of prospective insureds in mind, USLI has developed its Builder’s Risk product with numerous features and advantages to help take care of insureds through difficult situations. These features include:
- Ability to consider residential or commercial projects with limits of up to $3,000,000
- “All risk” inland marine coverage form including theft up to the policy limit
- No sublimit for theft of building materials
- Policy term for full duration of construction project
- Extension of policy done with simple endorsement
- Replacement cost valuation
- Low minimum premium
- Builder’s Value Plus endorsement
- Building materials/supplies used for construction
- Fixtures, machinery, equipment used to service the building
- Foundations of building/structure in the course of construction
- Temporary structures built or assembled on site
- “Soft costs” coverage including: additional interest expense on money you borrow to finance construction, real estate/property taxes, advertising/promotional expense, insurance expenses, survey costs, architectural fees and storage costs
With the ability to quote this product over the phone or online and USLI’s industry-leading customer service, we’ve tried to make doing business as easy as possible. Policy terms of 3, 6, 9 or 12 months are available to meet each individual customer’s needs.
To learn more about this product or to inquire about a quote, contact your USLI underwriter over the phone, online or through email.
As always, thank you for your support and business.
Contact Jim Cavanaugh
Second Vice President, Senior Underwriter | 888-523-5545 Ext. 2286
Contact Joanne Herishko
Underwriter | 888-523-5545 Ext. 2589
Written by David Ford
March 8, 2018