New Construction: Poised for Growth in 2022
Despite the current challenges within our economy, the construction sector has been a star performer, posting double-digit growth rates since the third quarter of 2020. According to Global Newswire, the U.S. construction industry is expected to grow by 15.6% by the end of 2021 and continue to grow in 2022. In September 2021 alone, nearly 1.6 million new building permits were issued nationwide.
Projects that were once sidelined are coming off the drawing board and will start seeking funding to get construction underway. In addition, it is suggested that new construction will boom to meet demands in the residential and industrial sectors. According to Forbes, “A new analysis from Freddie Mac found that approximately 4 million new homes will be needed to meet existing demand, representing a 52% increase compared with 2018.” Projects for large commercial technology companies and manufacturers have already begun as they work to support their expanding businesses.
At Devon Park Specialty, we offer coverage for new construction projects with up to $5 million in project costs. We can also consider up to $3 million in project costs when the insured is acting as the general contractor on the project. Coverage is provided on an inland marine form that covers building materials and supplies, fixtures and machinery, and equipment to service the building.
Our Builder’s Risk product is designed to provide well-rounded, comprehensive coverage for these new construction projects.
- Property in transit coverage available up to the maximum sublimit of $100,000
- Property off-premises coverage available up to the maximum sublimit of $100,000
- Soft costs coverage available up to the maximum sublimit of 20% of the policy limit
- Monoline general liability coverage available
As new construction ramps up, it is imperative builders obtain proper coverage to protect their investments.
Contact your Commercial Lines underwriter for more details about our Builder’s Risk product.
As always, thank you for your support and business.
Contact Michelle Ralston
Second Vice President, Team Leader | 888-523-5545, ext. 2015
Written by Bob Kane
December 2, 2021