Commercial Remodeling

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Commercial Remodeling
Overview
FAQs
Project Examples
Highlights
Availability
Resources

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Overview

Commercial properties are regularly remodeled, whether to attract or accommodate new tenants or to expand the owner’s business. No matter how big or small the changes, commercial remodeling (builders risk) insurance is crucial to protect these projects — and the investment and livelihood of the business owner and contractor.

Whether the project is valued at $1 million or up to $75 million, the US Assure Builders Risk Plan insured by Zurich provides flexibility to cover a wide range of commercial risks. Our commercial remodeling insurance also can be tailored to meet the varying needs of clients and projects.

FAQs

What is the difference between renovation and restoration?

A renovation, in builders risk insurance terms, means that an existing structure is being remodeled and changed, replacing old pieces with new. This includes additions, alterations, improvements or repairs — modifications that are often performed to keep up with the latest design trends. In contrast, a restoration refers to returning an existing structure to its original condition.

If the existing structure is covered elsewhere, is builders risk coverage available to cover just the renovation?

Builders risk policies can insure just the renovations, excluding existing structures. This is an important point because, although a client may have a permanent property policy already in place, renovations may be limited or specifically excluded under that policy. When clients purchase builders risk insurance for renovations, they can purchase coverage to complement what they already have protected under permanent property policies.

Can the owner perform the construction work?

The US Assure Builders Risk Plan insured by Zurich requires that a general contractor or a remodeling contractor with at least two years of project-related experience oversee the construction. If the property owner has the appropriate project experience, he or she is considered qualified to perform the work. However, clients should know that the project may be subject to other underwriting guidelines when the property owner is performing the work.

How does the client get an extension if the project is not complete?

In most cases, the policy can be extended prior to the expiration of the policy with underwriter approval. When requesting a policy extension for remodeling projects, the policy term can be for less than six months.

Project Examples

Basic remodel: changes to interior, e.g., replacement of fixtures, cabinets and flooring
Minor structural remodel: modifications to interior and exterior, e.g., doors, windows, roof replacement and ground floor additions
Major structural remodel: repair, replacement or removal of load-bearing walls or foundation of stories; adding new stories, stairways and elevators, etc.
Ineligible: Historical buildings (projects involving the historic registry or that will be applying for historical status during renovation)

Highlights

Quick, reliable turnaround (one to three days), including rush and quote indications
Issued online or directly with an underwriting, depending on project value, specific coverage needs, and the terms of the construction agreement
Insured by an “A” rated carrier known for its superior claims handling
Can be written in the name of the owner, contractor or other entity
Flexible policy terms, including extensions when required
Policy options include single project, reporting form, blanket deposit premium
Coverage options include earth movement, flood, ordinance and law, soft costs, business income and extra expense, and testing of building systems
Ability to increase additional coverage limits
Direct access to our dedicated team of more than 50 builders risk underwriters and specialists via phone or email
Higher commissions: 20% paid in all states, excluding high-value frame projects
Ability to accommodate fee-based agencies with large accounts; pricing flexibility for fee-based brokers
Premium payment installment options for policies over $500
Ability to write in all protection classes
Pro-rata cancellations
No co-insurance

Availability

Nationwide on an admitted basis