Why Correct Address Matters on Builders Risk Application
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:
Hi there. I'm making sure all my packages have arrived. It's frustrating when you accidentally enter the wrong address. Trying to get everything fixed can be a real pain, especially when you're trying to ship it to your friend's house to hide it from your husband.
It's crazy how one tiny detail can throw your plan off course. Just like when you enter the wrong address for your client’s builders risk policy.
It happens more than you think.
So I'm going to give you some examples. Then at the end I'll share some tips to make sure it doesn't happen to you, I'll even give you a link to a real claims example.
Here's some common mistakes we discover:
- A simple typo
- A new subdivision where the address hasn't been assigned yet
- The county changes the address
- The insured’s mailing address is accidentally used as the property address
Ooh, that's a bad one.
Issuing a builders risk policy with the wrong address costs a heck of a lot more than the price of a missing package. If a claim occurs, it could be totally denied or need a policy reformation. This requires the client to gather documents for the claims adjuster to prove what the address should have been. Think site plans, county records, permits, and so on. Gathering these documents can add weeks to the claim timeline.
And if there's one thing customers really don't like to wait for, it's money.
So how can you prevent this?
First, review the application with your client to make sure everything is correct before you actually issue the policy.
Second, have them sign the completed application.
If the address isn't assigned yet, provide the lot number, parcel number, and crossroads. You can come back later to endorse with the updated address if you want to, but as long as those three details are included, you should be fine.
Third, if you find a mistake was made, submit an endorsement to correct it before claim occurs.
I hope this helps. I gotta go. I see another delivery coming, and I've got to find some good hiding places before the hubby gets home.
‘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.
