Ask Your Peers - High Value Builders Risk in Florida by Evan Marcotte

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Evan Marcotte, Pablo Beach Insurance Group - Saint Petersburg, FL 33701

Reputation: 100 - Total posts: 10

Insured is building a house. Builder currently has a builders risk policy for $1.234 million and the bank wants and an additional $112k in coverage to make up for the increased value. Builder told the insured that they can not increase their policy. I don't even think it is a possible to buy a separate policy to make up for the $112k.

11 year(s) ago

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Vicki Cota, Gumtree Wholesale Insurance Brokers - Springfield, MO 65804

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0 Verified Reviews - 0 of 5.0

Vicki Cota, Gumtree Wholesale Insurance Brokers - Springfield, MO 65804

Reputation: 65 - Total posts: 9

I have no doubt that you will get some valuable responses to this. My comment is that surely this is nothing new. How many times does a house start out with a completion value and that value goes up because of upgrades requested by the owner? It's not like the completed value doubled. It is only about a 10% increase and that is probably more the normal than staying within the original value. This just caught my attention and I felt compelled to make a comment.

11 year(s) ago

1 Verified Reviews - 5 of 5.0

Chautauqua Wesley, Insurance Solutions - Roanoke, VA 24019

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Chautauqua Wesley, Insurance Solutions - Roanoke, VA 24019

Reputation: 1083 - Total posts: 162

See if the owner can add a umbrella to his personal insurance that would cover it. The bank might not accept that.

11 year(s) ago

1 Verified Reviews - 5 of 5.0

Nancy Elias, CompleteMarkets - Big Bear City, CA 92314

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5 Verified Reviews - 5 of 5.0

Nancy Elias, CompleteMarkets - Big Bear City, CA 92314

Reputation: 4229 - Total posts: 335

Hi Evan,

Thank you for using CompleteMarkets!
I conducted a search for Builders Risk Insurance in Florida using our Find It tool and found some companies that write that risk. You can click here to view my search results.

I highly recommend you send those companies a submission by clicking here to see if they can help you.

11 year(s) ago

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Mary Ann Pientka, Mel Himes And Associates Insurance - Deltona, FL 32728

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0 Verified Reviews - 0 of 5.0

Mary Ann Pientka, Mel Himes And Associates Insurance - Deltona, FL 32728

Reputation: 70 - Total posts: 9

I don't understand why the builder can not report an endorsement change to his policy. This is not an unusual request as change orders do happen... Zurich has a great Builders Risk Product as does many other carriers. Good Luck.

11 year(s) ago

1 Verified Reviews - 5 of 5.0

Ken Kukral, International Excess - Beachwood, OH 44122

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Ken Kukral, International Excess - Beachwood, OH 44122

Reputation: 591 - Total posts: 87

The builders response makes no sense. Ask why the carrier can not increase the limits. (I am assuming you will pay the difference in premium) Other options:

- Replace the builders risk policy (tougher once the building has already started.. can be done but not easy)
- Have the bank "force place" the additional coverage with the lenders single interest policy (will be at an inflated rate, but should be able to be done)
- Get excess coverage. $112,000 excess $1,234,000 (I might have an excess property market that will consider) Would most likely result in a $1,500 premium plus tax and fees.

e-mail me at [email protected] if you want to pursue

Ken Kukral, CIC
www.intlxs.com

11 year(s) ago

1 Verified Reviews - 5 of 5.0

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Evan Marcotte, Pablo Beach Insurance Group - Saint Petersburg, FL 33701

Reputation: 100 - Total posts: 10

I agree that the builders response doesn't make sense. That was my first piece of advice to the insured and he said he already tried that. I don't see why the builder wouldn't comply.

11 year(s) ago

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Chuck Hall, All Risks Ltd - N Chesterfld, VA 23236

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0 Verified Reviews - 0 of 5.0

Chuck Hall, All Risks Ltd - N Chesterfld, VA 23236

Reputation: 91 - Total posts: 8

Evan,
That's a really strange response from the builder. I don't see the any motivation on his part not to amend for the increased values. I'll follow up with a PM.

11 year(s) ago

1 Verified Reviews - 5 of 5.0