Builders Risk for Owner Builders

[fredbull337]

We usually get calls about someone wanting to subcontract their own house. Zurich specifically asks on their application if you are using a licensed GC with 2+ years of experience. I imagine most of the other agencies in our area just lie on that part of the application. Now that I am actually looking at building my own house I have started to look into the topic more. Do you guys know of any company out there that will write a builders risk policy for an owner builder?

Thanks
Fred

 

[adjusterjack]

Zurich specifically asks on their application if you are using a licensed GC with 2+ years of experience. I

Well, what did your Zurich underwriter say when you told him/her that you planned on being your own GC?

I imagine most of the other agencies in our area just lie on that part of the application.

Wow. That's quite an indictment of the insurance business in your area. I would like to believe that insurance agents know the consequences of lying on an insurance application:

Claim denial.
Rescission of the policy.
E&O lawsuit.
Cancellation of their agency contract by the company they burned.

 

[fredbull337]

I can say that because we have had people call in for builders risk quotes and when they say they will be their own GC we tell them Zurich will not write it. Several times we have followed back up with those people to see if they were able to find anything, only to find out they were placed with Zurich with other agencies. We asked if they told the agent they were subcontracting the house and they said yes. Its really not surprising and i'm kind of shocked, that you are shocked, that not everyone in this industry is 100% honest.

 

[adjusterjack]

We asked if they told the agent they were subcontracting the house and they said yes. I

An insured lying on the application is a big difference from an agent lying.

That insured's lie on the application is no surprise to me. I just don't see an agent risking his livelihood by doing it.

 

[ABAInsurance]

my go-to for builders risks are Zurich, USLI, Tapco.

 

[AZDave]

Zurich's question on the app is: Does builder/remodeler/owner/GC have at least 2 years experience?

So, if you as owner do not have two years experience, then no go for them.

If you don't have experience building, then you really should consider partnering with a GC. Just saying.

 

[InsCommentary]

"I imagine most of the other agencies in our area just lie on that part of the application."

I'm not sure I'd take the word of the insured on what was actually done. The commission on such accounts couldn't be worth a felony insurance fraud charge, loss of license, and the E&O carrier denying the insurer's claim against the agent.

 

[goodman2020]

This is a good idea. I read about most companies on the Internet and there are very positive reviews.

 

[Markthebroker]

I can say that because we have had people call in for builders risk quotes and when they say they will be their own GC we tell them Zurich will not write it. Several times we have followed back up with those people to see if they were able to find anything, only to find out they were placed with Zurich with other agencies.

Yup, I see this all the time. Welcome to the world of insurance.

 

[Markthebroker]

"I imagine most of the other agencies in our area just lie on that part of the application."

I'm not sure I'd take the word of the insured on what was actually done. The commission on such accounts couldn't be worth a felony insurance fraud charge, loss of license, and the E&O carrier denying the insurer's claim against the agent.

I'm sorry to say you're wrong. It is worth a felony to plenty of agents, as I see this kind of bs all the time. When I say all the time, that's not a figure of speech. It's constant.