U.S Builders Risk Renewal Facility
The Lockton US Builders Risk Facility is now entering its 6th year of successful operation after renewal in November. The USBRF team managed to negotiate with carriers to bring wood frame rates down to a competitive 0.4 annual wood frame rate whilst increasing capacity to over USD 60 million, with the potential to obtain above this in many instances. The team also maintained a highly competitive annual non-combustible rate of 0.055 up to USD 250,000,000 per project.
The facility offers substantial flood and earthquake capacity (including California earthquake) and remains an exclusive tool accessible to only Lockton companies’ clients and prospects. Coverage includes robust key sub-limits, early occupancy, existing structure cover, LEG 3 coverage, Renovation coverage and 90 days of built in pro-rata extension provisions.
Please reach out to our team for any queries; indications can be turned around within 48 hours.
Key Program Amendments
Annual Frame Rate - 0.40% Annual Non-Combustible Rate - 0.055%
What we cover
All risks physical damage coverage under broad manuscript policy form.
- Sizable flood and earthquake capacity - full-limits (noncritical) - USD 10,000,000 to USD 25,000,000 occurrence and annual aggregate - dependent on project type - subject to catastrophe modelling.
- Robust sub-limits for key coverage extensions.
- LEG 2 coverage included, LEG 3 coverage available.
- Early occupancy granted.
- Renovation coverage available.
- Existing Structure coverage available.
Capacity
- Wood Frame - USD 60,000,000 placed 100% in London. We can build out higher with the help of domestic insurers willing to follow the facility form (please approach us on this).
- Non-combustible - USD 250,000,000 per project value under the facility but projects up to USD 2,000,000,000 ECV (Estimated Contract Value) - Placed via the Open Market in London on a separate commission structure.
Protective safeguards
- Project site to be fenced, locked and lighted with remote monitored surveillance system.
- No requirement for live watchman, depending on location.
Key benefits
- Builder’s risk insurance facility exclusive to Lockton companies’ clients and prospects.
- Broad terrorism cover offered to wrap around builder’s risk policy form, which includes certified and noncertified events.
Additional features
- Coverage term - up to three years per project but longer if required. London carriers commit to cover the entirety of the project until TCO and transfer to the permanent property policy.
- Coverage extensions - 90 days pro-rata subject to loss ratio of less than 50%. After 90 days carriers reserve the right to charge a loading on pro rata.