Builders Risk Insurance | Owners or Contractors

With broad coverages and flexible policy options, the HDA Builders Risk Plan insured by Zurich is the nation’s leading property insurance solution for construction professionals. The Builders Risk Plan has been designed to meet the specific needs of most residential and commercial contractors and can be customized for even the largest construction projects. Following are just a few of the valuable features offered:

• Rate, quote, issue, and manage policies online
• Eligible projects include residential and commercial new construction, remodeling and installation
• Capacity for projects of any size and value, including wind and flood
• Available nationwide on an admitted basis
• Innovative coverage options designed with the needs of contractors in mind; many are automatically included with the option to increase limits
• Policy options include “one shot” or single structure, annual and monthly reporting form, and deposit premium
• Policies can be insured in the name of the contractor or owner
• Direct access to our dedicated team of more than 50 specialists
• Direct billing with premium payment installment options

Following is important eligibility and underwriting information:

Basic eligibility

• The Builders Risk residential / small commercial coverage form (40471) provides coverage for residential and commercial structures with values up to $10 million. Commercial structures with values over $10 million can be written on the Builders Risk Large Commercial Coverage Form (40660). The Large Commercial Coverage Form (40660) can be used for structures of any value. All policies are subject to certain underwriting guidelines and restrictions.
• Remodeling, renovation and restructuring coverage available under a separate program.
• Catastrophic limit is up to $5 million on reporting form policies; higher limits may be available with underwriting approval.
• Builders must have two years of experience unless otherwise qualified. Three years of experience may be required on larger commercial accounts.
• Policy may be issued in the name of the homeowner if the builder qualifies.
• We will insure structures during the course of construction provided the property and builder meet our eligibility guidelines. Banks are not eligible insureds; however, they can be added as an additional insured. Properties owned by banks are not eligible for coverage unless coverage is written in the builder’s name. That said, actual bank buildings being built or renovated for a bank are eligible operations for coverage during the course of renovation or construction.

Underwriting guidelines

• Structures with total estimated completed value greater than $1.5 million located in protection class 9 and 10 require prior approval.
• Any fire site with total limits at risk exceeding $3 million requires prior underwriting approval for all structures within that fire site (includes all covered buildings located within 100 feet of each other).
• Construction cannot be more than 30 percent complete at time of the policy’s effective date.
• Coverage on property located within 1,000 feet of tidal water or on a barrier island cannot are not eligible for wind coverage. The states that provide the wind and hail pools are Florida, Georgia, Mississippi, North Carolina, and South Carolina.

Other important information

• Residential and small commercial one-shot policies are written on an annual basis and may be renewed for up to an additional two years. Large commercial policies may be written with customized policy terms.
• $1,000 deductible is standard on all policies. A minimum premium ($375 in most states) applies on one shot policies. Rating and underwriting guidelines apply.
• ADU (Additional Dwelling Unit) construction on residential lots has been a very common project for many builders and homeowners, these projects are eligible for the program.