With the insurance industry becoming increasingly specialized, placing certain types of businesses can be difficult. One industry that is notorious for being more of a challenge is the home builders industry. With the economy back on the rise, this class of insurance has seen tremendous growth within the past several months and looks like it will continue to grow steadily. For these reasons, it is important that you work with a brokerage that specializes in writing insurance policies for home builders.
Why Is Placing Insurance for Home Builders so Difficult?
Due to the fact that we are trending towards a hard market, carriers are more reluctant to take on higher risk businesses like home building. In addition to being more reluctant, if a carrier is willing to write the policy, then they are also tightening up their appetite and being more selective in whom they will cover.
It is common for carriers to turn away certain types of home builders, such as 100% paper contractors. Additionally, often carriers will require that the contractor to do at least 20% of the work themselves in order to qualify for coverage. It is nuances like these that make placing home builders especially hard.
What Makes Veracity Different?
One of the main reasons we set ourselves apart from other insurance brokerages is our experience with and our understanding of the complexities of this highly specialized industry. With over 30 years of experience, placing home builders and contractors has been a main part of our business, with several brokers specifically dedicated to writing those types of policies. Currently speaking, there are not many carriers that will accept policies written for home builders; however, Veracity has developed strong relationships with a handful of “A+” Rated carriers who are all willing to cover this industry.
While writing policies for home builders can sometimes be tough, we have truly become leaders in making sure residential builders get the coverage they need. For more information about home builders insurance, call us today.