Aon Risk Solutions

Master Builders Risk Insurance Submission

prepared for
Lennar Multifamily Communities, LLC

Prepared on September 9, 2020

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Table of Contents

Intorduction……………………………………………………………………………………………………..3
General Information ............................................................................................................................... 4
Corporate Overview ............................................................................................................................... 5
Sample Project Experience.................................................................................................................... 6
Builders Risk….…………………………………………...……………………………………………………7

Appendix:

- LMC Pipeline Report

- LMC Builders Risk Loss Ratio Report
- LMC Safety & QA/QC Manuals
- Hot Works Permit

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Introduction
Invitation to Quote

This market submission contains underwriting data and background information for Lennar Multifamily
Communities, LLC (“Sponsor”) of the Master Builder’s Risk program. The main objective of the Master
Builder’s Risk placement is to provide broad coverage at a competitive cost with the goal of fostering a
long-term successful partnership.

While care has been taken in collecting the information contained in this market submission, it is possible
that incorrect information has been included. Lennar Multifamily Communities and Aon Risk Solutions
(“Broker”) have attempted to identify the types of information we believe will be desired by underwriters
for the purpose of analyzing the risks to be insured. Information on all of the details of this program cannot
be included. For these reasons, the information contained herein is not intended and shall not be
construed for any purpose as a warranty, representation or inducement of any kind, including, but not
limited to a representation as to the completeness and accuracy of the information contained herein.

This document and the information contained herein are confidential, proprietary information owned by
Lennar Multifamily Communities and/or Aon Risk Solutions and is provided to you for your sole and
exclusive use in evaluating the potential issuance of insurance coverage to Lennar Multifamily
Communities. It is understood that you will keep the information, strategies and ideas in this document
confidential, and that you will not disclose the information herein to anyone outside your company, nor
make any commercial use of this information without the prior written consent of Lennar Multifamily
Communities and/or Aon Risk Solutions, as appropriate.

Should you require additional information or have any questions regarding this market submission, please
direct your inquiries to the Aon broker contact below. When submitting your quotation, please ensure that
you have responded to each coverage requirement, term and condition as well as any service
requirement outlined in this market submission. If you are the successful market, you also agree to
provide authority to the Broker to issue certificates of insurance for every policy upon binding. If any
company that receives this market submission declines to quote to the submitting broker, all information is
to be promptly returned to the Broker and any copies thereof deleted from that company’s records.

Contact Information

Aon Contact Title Phone Email

Vice President, 832-431-2183 Mobile

Jennifer Garza Jennifer.Garza@aon.com
Broker II 713-504-8571 Mobile 2

Broker of Record

Aon Risk Services, Inc. of Florida

1001 Brickell Bay Drive, Suite 1100
Miami, FL 33131
Licensed CA Broker – Jennifer Sue Garza – License No. 0K98236 expires 7/31/22

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General Information

ITEM INFORMATION SUMMARY

Lennar Multifamily Communities, LLC (LMC)

15131 Alton Parkway
Developer Suite 345
Irvine CA 92618 USA
https://livelmc.com/home/

Lennar Multifamily Builders (LMB)

In-House 95 Enterprise, Suite 200
Construction Manager Aliso Viejo CA 92656 USA
https://livelmc.com/our-company/

Rhonda Mosley
Lennar Director of Risk Management
305-229-6499
Rhonda.Mosley@Lennar.com
Risk Management
Robert Duff
Lennar Multifamily Risk Manager
305-485-3836
robert.duff@lennar.com

Todd Farrell, President of LMC

Lennar Multifamily Tim Snook, President of LMB
Executive Leadership Johnny Yates, Pre-Construction Services (includes QA /QC)
Brian Ousley, Safety Director

Estimated Construction
2.6 Billion (2020 -2021)
Values

# of estimated projects 32 (2020 -2021)

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Corporate Profile
Developmer

Lennar Multifamily Communities, LLC

Lennar Multifamily Communities has been built on the financial strength and entrepreneurial spirit of
Lennar. Founded in 2011, Lennar Multifamily has quickly emerged as a leader in the development of
luxury rental communities nationwide developing and managing projects across the United States.
Further, Lennar Multifamily has an in-house General Contractor, Lennar Multifamily Builders, LLC which
is often utilized on Lennar Multifamily projects. Please refer to https://livelmc.com/ for further information.

Lennar Corporation
Lennar is one of the Nation's leading homebuilders providing homes for first-time, move-up, luxury, urban
and active adult buyers. Lennar was founded in 1954 in Miami, Florida and currently builds in 19 states
and more than 44 markets across the Nation. Lennar is currently celebrating its 60th year in homebuilding
and operates based on our founding principles of Quality, Value and Integrity. Please refer to
https://www.lennar.com/ for further information.

General Contractor

Lennar Mulitfamily Builders, LLC (LMB)

From high-rise buildings to garden-style communities to restoring historic locations, LMB is proud of its
adaptive approach, its dedication to sustainability, and its commitment to building great neighborhoods for
people to call home. Please see link for project experience. https://livelmc.com/

Historically, LMB has been utilized for roughly 50% of LMC’s projects. As noted in the loss ratio
spreadsheet in the appendix, LMB has exceptional loss experience.

Site Security

LMC is commited to maintaining a safe and secure construction environment as they abide by the highest
industry standards. These standards vary as they are tailored to the individual project risk, but generally
site security standards includes the following.

• Site Fencing and Barriers

• Site Lighting
• Loss Control Visit – LMC will regularly allow a risk consultant on site for an inspection and make
changes to the site based on any recommendations.
• LMC has utilized M Fire Suppressant at certain projects
• Site Surveillance – In particular, LMC enjoys a very strong working relationship with Fedora.
• Executive Oversight – Where appropriate, LMC will maintain weekly projects calls attended by LMC
Leadership to discuss site security measures in an attempt to reduce the risk of Arson

Moreover, LMC prides itself on being open to carrier feedback and aims for a collaborative approach with
its carriers.

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Sample Project Experience

Project: NOVO Project: Odin

Contractor: Johnstone Moyer Contractor: LMB
Frame Construction Fire Resistive + Frame
Mountain View, CA Construction Minneapolis, MN

Project: Tysons Central Project: The 23

Contractor: Hoar Contractor: Archer Western
Fire Resistive Construction Fire Resistive Construction
Tysons, VA Dallas, TX

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Builders Risk

Master Policy Term: 9/30/20 – 9/30/21(Annual)

Policy Information:

Total Insured Value Up to $100,000,000

Hard Costs Included in TIV
Soft Costs Included in TIV
Loss of Rents Included in TIV
CAT Sublimits Included

Policy Term: Projects may be added subject to a max policy term of 42 months

Terms & Conditions:

1. “All Risk” of physical damage or destruction including Real and Personal Property owned or used by
the insured in the course of construction, erection, installation, repair or renovation.
2. Testing and Commissioning. Building systems (Heating/Cooling, Mechanical, Electrical and
Plumbing) to be defined as Cold Testing.
3. Blanket Additional Insured and Waiver of Subrogation as required by written contract.
4. No “blue tarp” or “button-up” exclusions to apply.

Limits and Coverages:

1. Property in Transit - $5,000,000
2. Property at an Offsite / Temporary Location - $5,000,000
3. Debris Removal and Cost of Clean-Up. 25% an Insured Loss or a maximum of $25,000,000
whichever is less.
4. Pollution and Contamination arising out of a Covered Loss - $250,000
5. Demolition and Increased Cost of Construction - $10,000,000
6. Plans and Documents - $250,000 each loss or occurrence.
7. Professional Fees - $2,500,000 each loss or occurrence.
8. Claims Preparation Costs - $250,000 each loss or occurrence.
9. Loss Minimization - $2,500,000 each and every occurrence
10. Fungi, Wet Rot, Dry Rot and Bacteria - $250,000 arising from a covered loss.
11. Expediting Expense – $2,500,000
12. Contractor’s Extra Expense – $2,500,000
13. Escalation Clause – 10%
14. Temporary Repairs - $5,000,000 each loss or occurrence in addition to the Sum Insured with a
maximum of 20% of Damage.
15. Coverage for Furniture, Fixtures, and Equipment is included
16. Permission to Occupy is granted with no limitations
17. Crane Re-Erection sublimit - $500,000
18. Cost and expense to recharge or refill fire protection devices - $250,000.
19. Fire Department Service Charges - $250,000
20. Trees Shrubs, Grass, Plantings and Landscaping at the Insured Project, $1,000,000 subject to a
maximum $10,000 per item

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21. Construction Trailers - $250,000

22. Civil Authority/Ingress Egress - $5,000,000
23. Utility Service Interruption - $1,000,000
24. No Coinsurance shall apply.
25. Cancellation – Ninety (90) Days except Ten (10) Days for Non-Payment of Premium
26. Seventy-Two (72) Hour Occurrence Clause except One Hundred Sixty Eight (168) Hours for
Earthquake / Earth Movement
27. Terrorism – TRIA (Optional and subject to Additional Premium)
28. 50/50 Marine Clause
29. LEG 3 – Direct damage arising out of Design Error, Faulty Materials and/or Faulty Workmanship
(Optional and subject to 10% Additional Premium)
30. Policy can be extended for up to Six (6) Months for a pro-rata charge at the prevailing rates
31. Pro-rata Return premium available for early completion
32. Loss of Rents section to include coverage for sections of project in operation, collecting rents

Deductible(s):

All Losses Unless Otherwise Stated $25,000

Earthquake* $50,000
Named Windstorm* $50,000
Flood* $50,000
LEG 3 $100,000
Interior Water Damage $100,000
Waiting Period 14 Days Non CAT; 21 Days CAT

*CAT Physical Damage Deductibles to be agreed

Minimum Premium: 25%

Designated Loss Adjuster: Vincent P. Eckles

Engle Martin & Associates
3760 Kilroy Airport Way | Suite 680
Long Beach, California 90806
O: 323.761.6975 | M: 626.590.7348

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