Lockton Insurance BrokersInc., ranked among the top commercial insurance brokerages in the United States, and Zurich U.S. Construction, have partnered to offer a unique insurance program combining broad general liability coverage and comprehensive warranty protection for home builders and their clients.
The Home Builders Protective Program (HBPP) is designed for home builders with project(s) or revenues in excess of $100 million who distinguish themselves by their quality assurance processes. Key to the program is its expanded coverage for all construction defects for as long as the builder is exposed to such claims under the applicable statutes of limitation. Builders will no longer have to wait for resulting damage or a lawsuit before their insurance policy responds.
HBPP’s coverage is triggered solely by the presence of a construction defect. In addition, there is substantially reduced need to purchase excess or umbrella policies because the primary policy limits of $50 million (for bodily injury) or the aggregate sales price of each home for construction defect-related property damage combine higher limits than those typically available in a single product.
A 10-year warranty policy is offered to the new home buyer, which is transferable to each owner during the warranty period. The warranty responds to construction standards established by the builder or an independent third-party expert, not standards set by the warranty company. Finding equitable and reasonable solutions to costly construction defect litigation is beneficial to consumers and home builders alike.
Reducing the conflict among the builder, its insurance company and its trade contractors will allow builders to address home owners’ concerns in a more straightforward and efficient manner, improve overall economic conditions and boost the affordable housing marketplace.
Lockton Insurance Brokers provides the expertise and resources to develop integrated solutions to complex home building risk challenges. The company’s team of specialists comprises more than 70 years of combined experience with residential construction matters. Lockton Cos. is the nation’s largest independent insurance brokerage firm with annual revenues of approximately $150 million.
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