If small business is referred to as the heartbeat of America, then the more than 500,000 specialty contractors in the United States might just serve as the blood running through its veins. With new housing starts up more than 10% year-over-year, and 16% growth seen specifically in the construction of multi-family units – defined as five or more units – the construction industry seems to be back in business. And with this growth comes products, services, and assistance that these contractors desperately need from a trusted advisor. You.
Whether your customer is a contractor or home owner, Builders Risk insurance provides coverage for ground-up construction on commercial or residential properties. Here are 3 reasons why you should talk to your customers who are building or remodeling:
- Your customer has suffered a covered loss and due to changes in “ordinance and law” they’re rebuild must comply with these new requirements which may in fact cost more than fixing the loss to its original status. This could include such things as safety glass, handicap accessible ramps, or other changes in the building code. A policy that provides ordinance and law coverage protects your client from these unexpected costs.
- You customer is doing a major remodel and has thousands of dollars of copper plumbing delivered to the construction site. In the middle of the night the materials are stolen. Copper is one of the most popular commodities of thieves. In one situation, a contractor lost more than $500,000 in copper plumbing on a project valued at $1 million dollars. Having a builders risk policy that covers materials intended for installation on the job site protects your customers investment before and during construction.
- Have you ever heard someone complain or comment on the cost of architectural plans? Drawing up plans can run into the thousands of dollars and can easily become one of the more expensive costs in a new build or remodel. What happens if those plans are stolen from the job site or get destroyed? Something that seems so unlikely becomes a major expense for your customer to have replaced or redrawn. The right coverage protects them from exactly this risk.
Building is an inexact science. Cost overruns, delays in project completion and accidents are common occurrences that if not protected against can create a severe financial crisis for your customer. A builders risk policy can mitigate these risks and more provide financial protection and peace of mind for your customer while showing them the tangible value you bring to your relationship with them as their trusted advisor.