Whether a project is eligible for coverage is determined by the underwriter upon review of a submitted quote. Monoline defines Course of Construction as any active construction project with a total cost exceeding 20% of the Dwelling A Limit. While projects under this threshold typically do not require prior approval, any project surpassing the 20% mark must be submitted to underwriting for a final determination.
When completing the application, you should select "YES" to the question: "Is there a Course of Construction (COC) on any of the applicant's residences?" to ensure a proper underwriting review.
Eligibility Criteria for COC Residences
To receive a written determination, the risk must meet the following standards:
Ineligible Risks:
Ground-up construction projects.
Any projects involving demolition work.
Risks where a waiver of subrogation has been signed in favor of the general contractor.
Eligible Risks Must Have:
A Builders Risk or COC endorsement active on the underlying primary liability policy.
A general contractor who carries their own independent liability insurance.
Information Required for Referral
When submitting a quote for underwriter approval, please include the following details in your referral:
Is there a contractor performing the work, and do they maintain their own liability insurance?
Has a waiver of subrogation been signed?
Is there any demolition involved in the project?
Is there a Builders Risk or COC endorsement currently on the underlying policy?
Example Calculation: If a home has a Coverage A limit of $500,000 and is undergoing a bathroom remodel costing $40,000, this would not be considered COC because the cost is less than 20% ($100,000). However, if that same home had a renovation project costing $110,000, it would require a "YES" response and underwriter review.