An insured’s commercial building is almost finished construction. At what point does property coverage begin for the new construction under policy form CP 00 10 10 12 and corresponding form CL CP 00 34 10 18?
“Most recently, the biggest change has been the increase in building material costs,” says independent agent Gus Brabham on builders risk. “Making sure that the policies that are put into place consider the higher cost to rebuild as the project moves alon
Now is the time agents can improve and add value to their client relationships as rates rise and capacity tightens within the builders risk marketplace.
Many contractors are still unaware of the professional services and pollution risks associated with their construction work. Independent agents can help clients cover such risks.
The construction industry battled direct and collateral effects from COVID-19 as many builders risk policies did not provide the coverage needed.
Current low interest rates and a significant inventory shortfall mean it’s a great time to sell builders risk to commercial and personal lines clients.
With foot traffic down and remodeling needed to accommodate social distancing, commercial renovations are on the rise.
Independent agents should be thinking about how to provide more value to win a dwindling number of business clients—many of whom will be paying more and more for coverage.
In a challenging builders risk marketplace, “water damage is becoming a silent killer for a lot of carriers,” says independent agent Bret Lawrence. “We’re seeing water damage minimum deductibles increasing and many carriers sub-limiting the coverage.”
As investors flee the markets and businesses freeze operations during the coronavirus pandemic, the landscape for agents is shifting.
