Model Homes

What Does GL Code 46412 Cover?

ISO GL class code 46362 covers operations related to the display and sale of model homes by residential home builders and real estate developers. This code specifically classifies the general liability exposures associated with maintaining furnished model homes for prospective buyers, including risks from visitor traffic and property upkeep. It encompasses the activities of showcasing properties that are not yet occupied, serving as sales centers for new developments.

Who Uses This Class Code?

This code is primarily used by residential home builders, real estate development companies, and sales offices that operate and maintain model homes within new housing communities. It applies to businesses whose core activity involves presenting fully furnished homes to the public as examples of properties available for purchase.

Common GL Claims for This Class

Common GL claims for model homes include visitor slip-and-fall incidents on wet floors or uneven pathways, property damage caused by strong winds or hurricanes, and theft of appliances or furnishings from the unoccupied premises.

Coverage Tips for Code 46412

• Ensure adequate coverage for theft and vandalism, as model homes often contain valuable furnishings and electronics that can attract criminals.
• Implement robust safety protocols for visitors, including clear signage for construction areas and secure railings, to mitigate slip-and-fall risks.
• Verify that your policy includes coverage for "open house" events and any temporary structures or landscaping used to enhance the model home's appeal.
• In Florida, consider specific endorsements for hurricane, wind, and sinkhole coverage, as these perils pose significant risks to unoccupied structures.