Four Builders Risk Application Predictions with Madame Mary

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:

Hi there! 

Madame Mary here, casting my vision into the future of your next builders risk application. I have these special fortune cookies straight from the “Accuracy Application Factory.” 

That’s what I call our underwriting department.

These are designed to help you avoid application missteps that could cost you time. Now! Let’s see what the future tells us.

Cookie #1: A complete application lights the path ahead. Leave no detail blank, or shadows may follow.

Oooh, I’ve heard about this one a lot. Make sure to confirm the property address. Don’t make it up or type in “TBD.” If a claim occurs, a policy reformation may needed to ensure the policy accurately reflects the project, and that can add extra time to the claims process…and that means a longer wait for clients to get paid. And, make sure the billing address is accurate as well.

Cookie #2: When the builder’s past is proven, the future glows bright.

Ahh, this is a big one in the age of DIY. The Builders Risk Plan insured by Zurich requires the contractor to have either two or three years of experience depending on the project value and loss history over the past three years. 

If you don’t vet the builder first, how do you even know if they qualify for the policy? It pays to do your due diligence.

Cookie #3: List with wisdom, describe with care and fortune holds firm.

When your client has multiple structures they need to insure at the same project site, list the highest value of a single structure under “Any One Structure,” and the total of all projects under “All Covered Property.” 

Let’s take this one step further. For multiple structures, make sure you provide an occupancy description of the other buildings. For example, list it as a four-unit apartment rather than just “building” or “structures.”

Cookie #4: Clear costs today save chaos tomorrow.

When you submit your builders risk application, attach the cost breakdown. And make sure you’re using the correct construction completion date — not the policy expiration date. 

This detail will be especially important if the policy includes soft costs or business income coverage. The deductibles for these coverages rely on that completion date, so you’ll want to have the anticipated completion date listed.

And if that policy renews? Update the anticipated completion date again as it could’ve changed from the prior term. You know the saying: a stitch in time saves nine.

Whew! That’s enough looking into the future to make your head spin. Go forth and submit those applications with confidence. May all your fortunes be accurate, and all your TBDs be gone forever.

‘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.