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Developer bought out a builder who ran out of money. It's a 50 acre site with 150 homes to be built....10 have already been started by the previous builder. Where do I go w/ this?
Builders Risk - Developer 140 Homes
- Thread starter insurance1822
- Start date
If they are ground up construction I would look at USLI. They might decline do to project already starting but still a viable option.
I just did a builders risk with Lloyds as well.
Nice account!
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Lloyds is a good place to start and also Zurich as well.
- Thread starter
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As bad as this sounds I'm just too swamped w/ issuing personal lines accounts & I have too many new personal lines referrals to handle & i don't have the time to figure this out. i referred it out to a large commercial guy i know.
I know that's terrible to be giving away business. I asked this commercial guy to let me be involved in the quoting/issuing etc so i can learn myself
I hope you are splitting the commission...
This is going to be a pretty large account. Llyod's was $1800/year for 300k completed cost, I can't imagine what the price would be on 140 home project.
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- Thread starter
- #7
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Well I can't step into an account like this when I've never done it before. This commercial agent is always there to answer my questions & he's a great resource. I didn't ask for commission split just because I probably owe him money for the questions he's answered over the years.
But....If you're saying it was $1,800 for a 300k completed project...this is a $40,000,000 completed project (final replacement cost on all the town-homes..) So maybe I'm gonna regret this..
Not to mention there's an HOA so maybe I can insure that when it's done
But....If you're saying it was $1,800 for a 300k completed project...this is a $40,000,000 completed project (final replacement cost on all the town-homes..) So maybe I'm gonna regret this..
Not to mention there's an HOA so maybe I can insure that when it's done
- 995
And 140 people who will need home owners insurance.
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ProgramBusiness - Where the insurance industry clicks.
search for builders risk - handy little tool
Zurich's on here as US Assure
search for builders risk - handy little tool
Zurich's on here as US Assure
feldhaus02
New Member
- 1
I work at ACE and we do a variety of Home Builders.
The things you would want to look at:
How Many Home do they plan to build annually:
What are the expected costs:
What are the expected Annual Gross Receipts:
Do they plan on doing any Model Homes, how many?
If they have model homes I would expect there to be contents coverage, typically 30k per Model Home.
Then you take Gross Receipts Annually Divided up by (Expected Homes Annually + Model Homes) which give you where average home price.
What is the Avg Build Time: Typically standard is 90 Days but can be a year or 30 days.
Estimated Policy Limit: Total Gross Receipts / (Avg Build Time ie 90 /365) + Model Home Contents
We do these all the time and would do this as an annual policy with quarterly reporting and annual adjustment.
*There might be questions with what is currently completed, how many, what values does that represent etc. Also not sure of the area but do they need Flood, Earthquake, or Wind coverage.
Hope that helps shed some light on the project.
The things you would want to look at:
How Many Home do they plan to build annually:
What are the expected costs:
What are the expected Annual Gross Receipts:
Do they plan on doing any Model Homes, how many?
If they have model homes I would expect there to be contents coverage, typically 30k per Model Home.
Then you take Gross Receipts Annually Divided up by (Expected Homes Annually + Model Homes) which give you where average home price.
What is the Avg Build Time: Typically standard is 90 Days but can be a year or 30 days.
Estimated Policy Limit: Total Gross Receipts / (Avg Build Time ie 90 /365) + Model Home Contents
We do these all the time and would do this as an annual policy with quarterly reporting and annual adjustment.
*There might be questions with what is currently completed, how many, what values does that represent etc. Also not sure of the area but do they need Flood, Earthquake, or Wind coverage.
Hope that helps shed some light on the project.
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