Homes under Construction or Renovation Overview
PURE Programs provides Excess & Surplus (E&S) insurance for individuals and families remodeling, renovating or adding to their current high value home or commissioning the build of a new custom home. The program is designed for luxury construction and renovation projects with a completed value of up to $30 Million that do not qualify for coverage with an admitted insurer. This includes projects with a construction agreement that include a Waiver of Subrogation between the owner and contractor, requests to add the general contractor as additional insured, locations with higher catastrophe risk, ISO PC9/PC10 risks and new home or condo purchases that are vacant with plans to renovate within the next 6 months.
We offer best-in-class claims and proactive risk management, along with insurance coverage that is broader than typically found in the E&S market. Our risk management team collaborates with homeowners and builders to ensure homes are well-protected during construction and after. Our coverage is more customizable than typical E&S options, meaning our customers pay only for the coverage they need, and our granular pricing rewards customers who have favorable risk characteristics or have taken steps to reduce the risk of loss to their home.
PURE Programs Benefits
Best in Class Claims Service
Experienced in-house adjusters handle claims fast, efficiently and empathetically
A PURE Risk Manager with expertise in high value homes will conduct an on-site risk management consultation to assess vulnerability to risk and provide actionable steps to improve resiliency
Customers are automatically enrolled into a quarterly installment plan at no charge
Immediate Policy Delivery
Policy documents are available electronically once the policy is bound
Highlights of PURE Programs coverage include:
- Flexible Policy Terms Align with Project Duration
- Flexible terms allow a customer’s policy to match the project duration; from short-term projects that take 3, 6 or 9 months to more complex, long-term projects that take 1-4 years to complete. If the project is delayed, we offer policy term extensions with premium prorated to the completion date.
- Replacement Cost Coverage
- We will pay the reconstruction cost up to the coverage limit for both existing property and property under construction, with no reduction for depreciation, when the home is repaired or rebuilt.
- Broad Policy Contract with Specialized Coverage Options
- We provide coverage for back-up of sewers and drains; soft costs; property on site as well as in transit; scaffolding and other temporary structures; expediting expenses; pollutant clean-up and removal; and reward coverage.
We also offer coverages to address the unique exposures of construction risks. For example, an optional coverage is available to offset costs such as interest on construction loans, real estate taxes and permit fees that result from a covered loss delaying the completion of the home.
- Hurricane, Wind, Wildfire & Earthquake Coverage
- We provide coverage for Hurricane and Wind damage (can be excluded in Florida and Hawaii upon request), with the option to add coverage for Earthquake. For locations in California and the western states that have a higher wildfire risk, we will provide recommendations during construction to help customers build homes that are more resilient to wildfire loss.
- Personal Liability Coverage
- We offer the option to include personal liability coverage for the homeowner, removing the need to purchase liability coverage separately.
- Expert Advice to Build Resiliency
- Customers have access to a dedicated Resilient Home Advisor who will provide advice to help strengthen their home during the construction project and for years to come. The Advisor will coordinate inspections at key construction phases for multi-year, complex projects and review the inspections for insurance-to-value, taking mid-project work orders and budget changes into consideration to ensure the project is properly covered.
A Better Broker Experience:
- A Dedicated Course of Construction Underwriter
- Your PURE Programs Course of Construction Underwriter will support you as your key point of contact for high value renovation and ground-up risk countrywide. They’ll work closely with your PURE or PURE Programs underwriter to ensure a smooth handoff once the construction project is complete. You will receive automated reminders 1-month, 1-week, and 1-day prior to expiration and your COC Underwriter will proactively quote policy extensions for you.
- True Quarterly, Online Billing
- We bill all new business, policy extensions and endorsements directly to customers and file taxes and fees on your behalf. Policy premium can be paid online and is billed quarterly across the duration of the project. This means a 24-month project will receive 8 quarterly bills spread across the policy term.
- Online Quoting
- Quote projects online and refer directly to your COC Underwriter with easy-to-navigate fields that capture project and contractor information (eliminating the need for separate COC Questionnaires and Applications) and allow for upload of construction agreements and CGL certificates.
- Pricing that is Aligned with Risk
- Stages of construction that have a lower total insured value, such as the foundation and sitework stage, are priced into the project premium reflected on the policy. This eliminates the need for “stepping” limits up by endorsement and ensures that the project is insured to completed value from inception, while also reflecting fair and technical pricing. CAT exposed locations are priced according to the actual risk within the policy term based on monthly seasonality factors.
Currently available for homes in:
Arizona, California, Connecticut, Colorado, Delaware, Florida, Washington, Hawaii, Illinois, Idaho, Massachusetts, Maryland, Maine, Montana, North Carolina, New Jersey, New Mexico, Nevada, New York, Oregon , Rhode Island, South Carolina, Utah, Virginia and Wyoming. We plan to expand to additional states in the near future, making our coverage available countrywide.
Course of Construction
An insured was closing the next day on a ground-up new construction in Nassau County, New York. PURE Programs turned around terms on a policy in the same day and provided a solution with waiver of subrogation within the work agreement.