Supply chain challenges have led to complications in the construction industry. From rising prices to transportation issues, getting a building project off the ground has become a more difficult process in the past few years.
In this article, we will highlight how supply chain issues are affecting the building industry and how Maverick can help with flexible builders risk policies.
1. Problem: Material Shortages and Transportation Issues
One of the biggest challenges construction projects face today is a shortage of materials. Without the lumber, copper, cement, and other key elements, you’re building project cannot move forward. This creates frustration at every point in the process. A report by the WSJ found that over 90 percent of builders experienced shortages of supplies. Moreover, finding the right materials for your project is getting even more expensive as suppliers increase prices to try and overcome inflation and shortages. A report from Business Insurance noted that the rising costs of building materials had seen a 26 percent increase in construction project expenses.
Another major challenge bringing some construction projects to a halt is not the ability to source materials but rather the inability to transport them. While finding local or regional suppliers is one way to overcome this challenge, it is not always possible. Fitch Ratings noted that one of the busiest gateways in North America, the Port of Long Beach, has had “significant congestion due to increased cargo.” Getting supplies to your construction site will continue to be a challenge as natural disasters, and political unrest cause shutdowns and shipping delays.
Solution: Flexible Terms and Month to Month Extensions
If you have builder’s risk insurance and experience delays in your project completion deadlines, you're often left having to buy another long-term policy. That’s an added cost and hassle that comes with the supply chain challenges in the construction industry. It’s why at Maverick, we offer insurance policies with flexible terms and month to month extensions should supply chain issues impact your project. You'll only pay for what you need.
It's important to note that the end of your construction project is one of the most important times to ensure you have a builders risk policy in place. As appliances and other high-value items are added as finishing touches to the home, it's crucial to make sure you have an active builders risk policy in place to protect these items against damage, theft and more. Don't leave your project at risk, it's easy and cost-efficient to extend your builders risk coverage with Maverick.
2. Problem: Rising prices
Although rising prices are really the result of a supply shortage and logistic challenges, it still presents a significant problem for construction projects. Suppliers and transportation options are getting more and more expensive, driving up the cost of building ventures. Inflation and tariffs can also cause financial headaches for construction companies.
Solution: Savings and bundle discounts
Maverick can save builders an average of 23% on their current builders risk program. Also, if you are a Maverick Warranty client you will receive a bundle discount when you purchase your builders risk insurance through Maverick. With the rising costs of building materials, saving on your premiums is more important now than ever before.
3. Problem: Endless Roadblocks and Workarounds
The past few years have presented more challenges for builders than ever before. From multiple lockdowns to supply chain issues and labor shortages, the roadblocks often seem endless. Here, at Maverick we believe risk management shouldn't be on a builder's list of challenges. We know you're busy running your business, which is why we're dedicated to making the risk management process quick and easy.
Solution: Same Day Quoting and Industry Expertise
Even if you already have a builders risk policy in place, switching to Maverick is quick and easy. We offer same-day quoting through an easy to use digital platform, often providing quotes to our builders within an hour or two. As a homebuilder, we know you're busy and face many challenges on a daily basis. That's why we're dedicated to making the process of obtaining insurance fast and simple.
Our team members are experts in our field. When you purchase builders risk insurance through Maverick, you will have a dedicated Maverick team member managing your policies. We specialize in insuring the construction industry. We stay up-to-date on current trends and challenges facing the industry, including supply chain problems, so that we can better serve you, the builder.
Our industry is changing now more than ever before.
Here at Maverick, we understand the challenges today's builders face. That's why we're on a mission to streamline risk management for builders.
Maverick has been securing construction projects for over 35 years. We provide third-party warranties and commercial insurance products to builders, including builders’ risk insurance. When it comes to protecting your investment, you want to work with a company that is able to meet the current risk demands, including supply chain challenges.
You can consider Maverick your one-stop shop for warranty and business insurance. Our goal is to make things as easy as possible for our clients. Contact us today.
We’re a trusted and experienced financial advisor to builder’s across the country. If you’re a homebuilder in need of structural warranties for your homes or insurance to protect your business, reach out to our team.