“On a builders risk, there’s the limit for the project and there’s also a limit for temporary location and property and transit. “We’re seeing things like higher flood and earthquake limits than in the past,” Primerano notes. “Some companies don’t have any appetite for renovation and some have a limited appetite, so that helps keep the pricing at a level place there.”Īs competition drives rates lower for superior risks, expect terms and conditions to broaden. And renovation projects will encounter more stable rates “because they’re a tougher risk-companies tend to have tighter underwriting guidelines,” she says. “There seems to be plenty of capacity out there.”īut in a hard-hit class like frame construction, “pricing seems to have tightened up some,” Primerano explains. “That’s just really hot right now, and the rates have been driven pretty low,” she explains. That applies particularly to “superior risks” like ground-up construction and risks with either minimal natural catastrophe exposures or none at all, says Sharon Primerano, chief underwriting officer for the marine practice at The Hartford. There’s confidence too after what we’ve been through from an economic standpoint, and a desire to grow the business.” “There’s a willingness in the industry to take on more risk. “From a pricing standpoint, it really depends on what people want to do and how risk-averse they are,” says Dan Feige, head of marine and engineering lines for Zurich product underwriting in North America.įor some classes, “pricing will continue to be competitive,” Feige says. Overall, trends in builders risk insurance rates are hard to pin down. Here’s what to keep in mind about the market heading into 2015. 2014 saw myriad large builders risk losses when multi-story wood frame projects in San Francisco, Houston and Rockville, Maryland suffered serious fire damage.īut the line of coverage involves more than just frame construction.
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