How to Calculate Total Completed Value for Builders Risk Policies

Builders Risk Tips With Director of Producer Training and Development

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2 min

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, I'm Mary with US Assure.

Fall is finally here. And you know what that means. Pumpkin. Everything. Sweaters, pretty colored leaves and football. And for some of us: reading by a roaring fire.

Now, you could reread your favorite book, but I've got a better suggestion. Why not read the Zurich builders risk coverage forms? They'll keep you on the edge of your seat.

Let me entice you by reading a little excerpt from one of our best sellers. Definitions.

Total completed value: that means all costs associated with the building and designing of the covered property, including labor, overhead materials, and, if included, profit. Now, what does overhead mean? Overhead means those business expenses other than materials and labor incurred either directly or indirectly, due to the construction of a dwelling or structure.

Now here are a few examples.

“Materials” like windows, pools, landscaping, roofing systems. 

“Design” might be existing facility analysis or zoning modifications.

“Overhead” includes things like payroll, utilities, administration charges, just to name a few.

Now, you've got to ensure the most accurate total completed value for your clients or they’re underinsured.

Has this left you wanting more? You know, you can have a free download of this coverage form from the Forms Library on our policy issuance platform.

And here's one last tip: consider touching base with your clients about total completed value. They could have taken change orders, or material price increases could affect the total completed value.

So, if it does, log into the issuance dashboard and complete a new endorsement. Now while I'm not able to read by a cozy fire, maybe not ‘til January or February, at least here in Florida, I can certainly enjoy everything pumpkin and maybe even toss around the old pigskin.

Hey, I've got skills.

‘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.