Client: A Los Angeles real estate investor building two new residential buildings in East Los Angeles · Coverage: Builder's Risk + General Liability · Status: Bound
The problem
After finishing one project, the investor moved to a new site: tear down the existing structure and build two new buildings with six units. The bank required builder's risk and at least $500,000 of liability before funding. Underwriters wanted plans, the scope of work, a cost breakdown and security details, and the old liability renewal quote had expired and still listed the previous project.
How Pierce helped
- Collected the architectural plans, the contractor's scope-of-work letter and the construction budget
- Confirmed with the client that the old structure and foundation would be fully demolished, which changes how the risk is rated
- Documented security for the underwriter: 24-hour camera recording, materials locked in a shed and someone on site daily
- Had the liability policy requoted for the new location and added the lender as additional insured
- Sent the client a plain-language summary of why the project needs both policies
The result
Builder's risk was written up to $1,692,631 per building ($5,000 deductible) with $1M of ordinance or law coverage, plus $1M/$2M general liability with the lender added by mortgagee endorsement (CG 20 18). The package was $7,940.90 for the year, taxes and fees included. It was bound on October 30, 2026, and the documents went to the lender's loan file.
Why it worked
Getting the underwriter every construction detail in one package kept the file moving, and building the lender's endorsement in from the start meant the evidence of insurance was accepted the first time.
Related coverage
Builders Risk Insurance · Insurance for Real Estate Investors & Landlords · General Liability Insurance · Request a Certificate of Insurance
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Client names and identifying details are withheld for privacy. This story is based on an actual account handled by our agency, as documented in our files. Coverage, pricing and results for your business depend on your own details.