Annual Audit

The annual audit is the preferred form for covering builders with 6 or more starts. It’s taken the place of the monthly reporting form as the most popular way to insure larger builders within our agency.

The policy set up premium is based on the projected 12 month number or new starts multiplied by their average estimated completed value.

Plus, the completed value of homes in existing inventory for greater than 12 months.

Multiply the total combined values times the rate to determine the policy set up premium

A payment plan is offered to spread the cost over 9 months.

After the end of the policy year, your actual number of starts and values are audited and the final cost of the policy is determined. If the audit premium is greater than the policy set up premium, you owe additional premium upon audit. On the other hand, if the audit premium is less than the policy set up premium, you get a refund upon audit.

The main advantage is that there are no concerns about forgetting to send in a monthly report and the resulting lack of coverage on a start.

In addition, the rates are discounted as compared to the single shot policy.