Insurance Consultants Of Maine Newsletter

Insurance Consultants of Maine Newsletter
Scott Simmonds, CPCU, ARM
August, 2005

Unbiased Insurance Info & Advice
www.endwimpyinsurance.com

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Feel free to forward this newsletter to your colleagues. Comments, questions and suggestions are always welcome. Email: scott@icofmaine.com. You are getting this publication as you subscribed or gave me permission to add you to the list.

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Introduction to Builders' Risk Insurance

Builders’ risk insurance policies cover buildings during the construction, renovation, or repair process. Coverage is provided on the structure and materials used in construction. In most cases, property is covered while in transit, at temporary storage locations, and while stored at the job site.

Here are some of the issues to consider:

Amount Of Coverage - Most policies require that you include 100% of the expected construction cost as the amount of insurance. Coinsurance penalties may apply if you fail to meet this requirement. Work with your insurance advisor to determine what costs to include in selecting the amount of coverage.

You May Already Have Coverage - Your property insurance policy may include coverage for newly acquired and newly constructed buildings. The amount of coverage may be small. However, it may be broad enough to eliminate the need for an additional insurance policy. Review your policy for the perils included in coverage.

Deductibles - Higher deductibles can reduce your costs. Consider $5,000, $10,000, or more.

Perils Covered - What causes of loss are included in the policy? Special perils forms include damage by any cause except what's excluded - earthquake, flood, intentional damage by you, mold, terrorism, and damage by insects or vermin, for example. Named peril policies list the events that are covered – fire, lightning, wind, explosion…

Theft Of Building Materials - Some policies exclude theft of building materials stored on site. Some require gated storage areas. Read your policy.

Subcontractors’ Work - Is the work of subcontractors (while in process) included in the coverage?

Collapse During Construction - Some policies exclude damage caused in the collapse of the building. Review your insurance policy

Business Income - Coverage can be included for loss of income in the event that a fire or other insured event prevents you from doing business. Imagine a new hotel under construction that is destroyed two months before completion. The losses in revenue while the building is rebuilt could be substantial.

Occupancy - Most builders’ risk insurance coverage terminates at occupancy. Coverage ends automatically. Be sure you let your agent know ahead of time that you are moving in. Coverage may terminate if the building is ready for occupancy. Talk with your advisor.

Soft Costs - After a building under construction is destroyed there may be architects fees, attorney’s bills, planning board reviews and the like before reconstruction can begin. Many policies require soft-costs to be a separate limit of coverage.

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Take a look at our other reports and teleseminar CDs too - http://www.icofmaine.com/store.html

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Life In Maine And Other Stuff - I spend a fair amount of time on the insurance stuff in this newsletter. Though, my readers comment more on the animals I mention in this little section!

It's really summer now in Maine. Eighty and ninety degrees seems almost normal. The nights are cool though.

No new beast sightings to report. I did hear jungle noises coming from the back yard last week. I'm told it was a fisher (part of the weasel family) - sounded like baboons! Animal control in my town reports 13 cats missing from my neighborhood. It must be a fat fisher!

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Biggest Business Insurance Mistakes White Paper - Get my "20 Biggest Business Insurance Mistakes" ebook in printer friendly form. Send a blank email to bizmistakes@icofmaine.com to receive your no obligation copy.

"The 20 Biggest Personal Insurance Mistakes" White Paper - Great info on making sure you have the right personal insurance. Just send a blank email to personal@icofmaine.com. Your copy will be emailed to you immediately; at no cost of course.

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Your Privacy - I will never sell or distribute your email address to any other person or organization.

Do You Have The Right Insurance? Contact me to discuss an unbiased review of your insurance program. Do you have the right coverage? Can your policies be fine-tuned to improve the protection? Can changes be made to ease the administrative burden insurance causes? Are you getting the service you should from your broker? I can help. Call 207.284.0085 or email me at scott@icofmaine.com. Remember, I don't sell insurance so I'm unbiased.

Need A Speaker? I'm pleased to speak to trade, business or service associations about insurance topics. Call 207.284.0085 or email me at scott@icofmaine.com. Also check out my speaker's page at www.icofmaine.com/ispeaker.html.

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Scott Simmonds, CIC, CPCU, ARM
Insurance Consultants of Maine, Inc.
20 Sofia Road
Saco, ME 04072-9017
Phone 207 284-0085
Fax 801 991-4027
scott@icofmaine.com
http://www.endwimpyinsurance.com

Unbiased Insurance Solutions

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Insurance Consultants of Maine, Inc. is an unbiased, fee-only insurance and risk management advisory firm. We don't sell insurance and never accept fees or commissions from insurance companies or agents.

Comments regarding insurance policies or products in this newsletter are for information purposes only and do not constitute an endorsement. I accept no fees or payments of any kind from any insurance organization or any company mentioned in this newsletter.