The Facts

JS Family Construction was nearing completion on a new, custom single family home. The construction crews packed up early one afternoon knowing a severe thunderstorm was expected.

As the construction crews arrived to the job site the following morning, they immediately noticed damage from the storm. Lightning struck a tree causing a large branch to break off and crash through one of the recently installed custom windows. Upon further inspection, the crew noticed debris scattered throughout the job site and minor damage to the structure. After assessing all the damage, the builder realized that additional expenses were necessary to repair the structural damage and replace and install the new custom window. Additionally, due to the time required to replace the custom window, repair the damages and clean the site, the crew was concerned the completion of the home would be delayed. In an attempt to minimize the delay, the builder put a rush order on the new custom window and the crew began the repairs immediately.

The Result

Under the provisions of Victor’s Builders Risk coverage form, the repair and replacement of the custom window was covered under the coverage limits minus a standard deductible of $1,000.  The cost to clean the debris from the site and repair the structural damages were covered under the debris removal built-in coverage with a limit of $150,000 and no deductible. Additionally, the built-in coverage for expediting expenses allowed the builder to use express shipping for the new custom window. By rushing the shipment, there was no delay in construction and no additional labor expenses were incurred, therefore reducing the overall amount of the claim.

Risk Factors

Risk Factor #1

Damages to a custom home caused by a storm may result in unexpected expenses for labor and additional materials. Built-in coverages such as debris removal and expediting expense may help mitigate this cost.

Risk Factor #2

If the custom window did not arrive on time or additional labor was required to avoid a delay, soft cost coverage, built in to the Victor coverage form, would have covered most, if not all, overtime expenses incurred to repair the storm damage.