Builder’s Risk Insurance

Presented by The Hanover Insurance GroupMarine Advantage Unit

March 30, 2010

Builders RiskBuilders Risk

• Who needs coverage for new construction?– Owners– General Contractors– Sub Contractors

• Who needs to be named on the policy?– Owners– General Contractors– Sub Contractors

Types of ProjectsTypes of Projects

• New construction• Additions• Renovations -

including the Existing Structure

• Renovations - excluding the Existing Structure– This is an Installation

Floater, which we can also quote

Hanover’s AppetiteHanover’s Appetite

• $100 million available capacity for superior construction

• Most types of Construction can be considered– Frame, Joisted Masonry, Non-Combustible, Masonry

Non-Combustible, Fire Resistive

• We have a proprietary Homebuilders Form– Supplemental coverage and coverage extensions

tailored to the needs of residential contractors• Model Homes and Contents coverage is available• Coverage is available on a reporting basis

• Renovations can be considered

Information needed to quote?

Information needed to quote?

• ACORD Builders Risk application completed– Hard and Soft costs– Location– Job term– General Contractor

• Renovation Supplement (if applicable)• COPE

– Construction• Number of floors, square footage, etc.

– Occupancy (Intended)– Public and private protection– Exposures

Basic CoveragesBasic Coverages

• Hard Costs– Structure and materials

• Soft Costs (Optional)– Design fees, advertising, Realty taxes, Interest,

Rental income, Business Income, Professional Fees

• Equipment Breakdown (Optional)• Transit and Off-Site Storage

– Coverage for materials that will be a permanent part of the completed structure

– Limits built into the form can be increased

Other InformationOther Information

• Length of job and policy term– We write coverage for the entire term of the job– Rate remains the same from start to finish. Pro-rata

cancellation is offered, subject to any minimum premium

– Extensions will be considered, usually at the original rate

• Waiver of Subrogation– Included in form, applies if subrogation is waived in

writing on the contract prior to a loss

Catastrophe PerilsCatastrophe Perils

• We can offer Flood and Earthquake depending on the location

• We have a limited appetite on coastal locations

Completed Value RatingCompleted Value Rating

• Our rates contemplate that there is no exposure on Day 1 and 100% exposure on the last day of the job – 55% credit already built into the rates

• If the policy limit is changed, the premium is calculated back to the original effective date

Special NotesSpecial Notes

• Turn-around Time– We will have a quote back to you by your target date

• Online Builder’s Risk (Not available everywhere)– For new residential and mixed-residential construction– Referrals are approved/denied within 24 hours– Quote, issue, and print the policy in your office– 20% commission– Payment plans available on Direct Bill– Accessed through The Agency Place

• Green Building Coverage Available – For LEED-certified buildings

Questions?

Other Coverage options that Hanover Inland Marine can offer for your Contractors:

•Installation Floater

•Contractors Equipment

•Equipment Dealers

•Property

Contact your Inland Marine underwriter with any questions.