Just Released: Inflation Guard Endorsement & More

March 1, 2023

A safety net for increasing material costs is now available through the expansion of our inflation guard endorsement for the Builders Risk Plan insured by Zurich.

After receiving feedback from our distribution partners, reviewing with our Distributor Advisory Council and evaluating how the increasing cost of building materials continues to impact project values, US Assure is expanding our offering for the inflation guard endorsement.

Your clients can now purchase this add-on coverage for residential and commercial new construction and remodeling projects valued up to $10 million with a policy effective date of March 1, 2023, or later.

Previously only available for commercial projects valued at $10 million or more and manually issued by an underwriter, this expansion means smaller-valued projects can benefit as well.

Unlike the contract change order endorsement — where the cost of materials increases at the owner’s direction — our inflation guard endorsement for projects valued under $10 million covers the unexpected cost increases of materials being installed throughout the course of construction, up to five percent and split over the entire policy term.

Bear in mind, this optional coverage is not a replacement for correctly calculating the total completed value or endorsing your client’s policy with the adjusted total completed value. It’s meant to function as a safety net for unknown material cost increases.

Additionally, for new construction policies with premium between $1,501 and $5,000, your insureds can expect to have one additional installment option with our standard down payment of 25% for a 12-month policy.

With these updates, you can continue to feel confident about your decision to depend on the Builders Risk Plan insured by Zurich. As always, we’re listening to your needs and responding to the market as it changes.

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