Course of Construction

[Indie]

In CA course of construction 8,000 sq ft home, Construction in progress over 2 yrs now and almost complete. Rep cost $2,300,000. I can only find Lexington Ins for $10,000 annual which is too high for client. Any other companies or Gen Agency I could check..


Thanks

[InsMgmt]

No Homeowners policies available, which will pick up the builders risk exposure? Depending on how close the project is to completion, I would believe that there is an HO-3 that would satisfy the need.

[LadyBroker]

The HO3 won't apply, as the home is not yet certified for occupancy. I have a couple of markets who will look homes that are already under construction, but here's where you run into the premium challenge -- those carriers will charge you as though they are writing the home ground-up. I know that seems crazy, but then again, if the home burns to the ground 5 days before it's done, the last carrier on the risk is the one taking the $2.3 million hit. I would actually tell you that $10,000 is not a bad price for this risk.

Who is the carrier currently on the deal, and why can they not extend?

If you'd like to talk more directly about markets for this risk, PM me. And have a great day!

[SFOInsuranceLady]

Indie,
Did you try American E & S or Burns and Wilcox, both in San Francisco? Lexington may be the only way to go as they are the ones who do my COC's. Cambridge General Agency in Walnut Creek does (I think they use Lexington too,, though).
You can also try Anderson & Murison, Appleby and Sterling and Yates & Associates. I have used all of these agencies before and they can be very helpful. Send me an email if you need their contact information.

Also, LadyBroker is right. An HO-3 wouldn't apply.

Good Luck!

[InsMgmt]

Actually, we use a market that does provide an HO-3 for homes in the course of construction, which will be completed and occupied within 60 days. They attach a Builders Risk rider to the issue. Once the home is complete the rider is endorsed off of the policy and the homeowners form continues. This is assuming that the home is not vacant, that there are workmen on site daily, and that the homeowner is not absent.

Just a thought that it might not hurt to call your personal lines carriers and ask the question. But, then I suppose I need to remember that I am located along the East Coast and this is a question for a CA exposure.

[MissOptimis]

Fireman's Fund offers an excellent Course of Construction policy. It is bascially an HO3 with an endorsement for Course of Construction. They are really great about it. They periodic inspections to make sure the home is to value and there is no risk of claim will it is under construction. I would also check AIG Private Client Group. They pretty much take anything as long as it is high value.

[LadyBroker]

Every wholesaler can get you a quote for this risk, but the question we are all going to have is why is the current carrier not offering extension?

[Sports_Agent]

Zurich-American has an excellent Builder's Risk that you can rate, apply online, bind, print the application and the policy, print invoice, certificate, etc. It is an agency bill so you can withold your 12 1/2 % commission upfront and submit the balance on line... They will write new home consrtuction and remodelling.

Go to buildersrisk.com and get an immediate appointment.

Good Selling