Four Add-On Policies for New Home Construction

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:

Oh, my! The cameras are already rolling. You caught me. I'm trying to squeeze in some practice for my singing telegram gig.

My shoe obsession has gotten out of hand, and I need to supplement my income.

Just like the extra cash I'll earn for that beautiful pair of Target sandals — in every color — our supplemental policies can cover your clients when their projects call for something beyond builders risk insurance.

Our four supplemental policies are only available if your client already has a Zurich builders risk policy.

These policies include unsold dwelling, model home contents, trade-in and purchaser under contract.

Let's run through them.

Unsold Dwelling Policy

You might also know it as third-year policy. This is available for new residential construction projects on the small 40471 coverage form.

Builders risk typically limits policies to two years at most. You may want to offer the unsold dwelling coverage if your client still has a little bit more work left, or if the structure is complete and it's up for sale.

But, remember: because we're insuring the project that's almost complete, the rate is higher than it would be for builders risk.

Model Home Contents Policy

This is for contractors who build subdivisions with a few model homes. That way, they're covered for all the fancy contents.

Trade-In Policy

This covers a home that a contractor takes in trade. We see this happen sometimes to cover part of a down payment.

The policy provides coverage like you get for a vacant policy for up to 12 months. It allows the contractor to figure out what they want to do with that home.

Purchaser Under Contract Policy

Let's say your contractor client finishes construction of the home before closing is complete. They agree to allow the purchaser to move in early. But, they charge rent until the papers are signed.

Keep in mind: this is a different coverage form from builders risk. This 90-day property policy covers your contractor until ownership transfer takes place.

Just like my singing telegram gig, these supplemental policies can add extra coverage to your client's need for a well-protected project.

I better get back to some more practice ... I gotta take a vacation somewhere where those sandals will come in handy.

‘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.