5 Tips for Insuring an Existing Structure During Remodeling
Builders Risk Tips With Director of Producer Training and Development
Each month, US Assure Director of Producer Training and Development Mary Stiglic joins us in the studio to address a common question or pain point to help you confidently sell to and service your construction insurance clients.
Read the Video Transcript:
Decisions. Decisions, decisions.
If you've ever gone through a remodel, you know what I'm talking about. Picking out colors, flooring, backsplashes, countertops. That's just part of the adventure.
Are the building materials backordered? Will the contractor show up every day? And a really big one: Do I have the proper insurance coverage?
If your customer is relying on their homeowner policy, maybe not.
It's best to check with the homeowner carrier. If they're not willing to provide coverage, you're in luck.
The Builders Risk Plan insured by Zurich can cover many of your client's renovation projects. We can cover just the renovations.
So if the current carrier wants to stay in place on the existing structure, great. Or we can consider the existing structure along with the renovations in many cases.
Now, when considering Zurich’s builders risk plan with existing structure coverage, there's a few things that you need to keep in mind.
- Zurich covers the existing structure, actual cash value and the renovations replacement cost.
A good source to figure out the existing structure ACV if it's not listed on the bank statements is Marshall & Swift, or maybe your favorite homeowner calculator?Zurich doesn't provide an ACV calculator. - The renovations need to be at least 20% of the existing structure value.
So, the existing structure is $100,000. The renovations need to be at least $20,000. - Zurich can provide term policies for remodeling projects.
So, 6, 9 or 12 months. However, the 12-month term is not available with existing structure coverage if renovations are less than $50,000. - Remodeling policies are fully earned in most states.
Louisiana, Maryland, Montana, and New Hampshire are able to cancel their policies. - Extensions may be considered with underwriting approval.
Just be sure to ask for the extension before the policy expires.
Using a Zurich Builders Risk policy is an easy decision. Picking out the perfect wall color...eh, not so much.
‘Til next time.
This is intended as a general description of certain types of insurance and services available to qualified customers. Any description of policy provisions is meant to give a broad overview of coverages and does not revise or amend a policy. Refer to the policy coverage form for a complete representation of the scope of coverage, terms, conditions, exclusions and more. The policy is the contract that specifically and fully describes your coverage. Some products may not be available in all states and may only be offered on a non-admitted basis. Product availability is subject to change.
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