Define: Builders Risk Coverage Form

A Builders Risk Coverage Form is an insurance policy that provides coverage for property damage and loss during the construction or renovation of a building.

Builders, contractors, and property owners involved in construction projects usually purchase Builders Risk Coverage to protect their investment in the event of damage or loss.

Builders Risk Coverage typically covers damage or loss to the building under construction, as well as materials, equipment, and fixtures on-site. It may also cover additional expenses incurred due to delays in construction caused by covered perils.

Common perils covered under Builders Risk Coverage include fire, theft, vandalism, windstorm, hail, lightning, and certain natural disasters. However, coverage can vary depending on the specific policy.

Exclusions can vary depending on the policy, but common exclusions may include damage caused by earthquakes, floods, acts of war, intentional acts, and faulty workmanship.

Yes, Builders Risk Coverage can often be extended to cover subcontractors working on the construction project. However, this may require additional endorsements or policy modifications.

Builders Risk Coverage is typically in effect for the duration of the construction project, from the start of construction until the project is completed or the property is occupied.

In most cases, Builders Risk Coverage is not transferable to a new owner. The original policyholder would need to cancel the policy and the new owner would need to obtain their own coverage.

While it is generally recommended to purchase Builders Risk Coverage before construction begins, it is possible to obtain coverage after construction has started. However, coverage may be limited, and it is best to consult with an insurance professional.

The cost of Builders Risk Coverage can vary depending on factors such as the value of the property, the duration of the construction project, the location, and the coverage limits. It is best to obtain quotes from multiple insurance providers to determine the cost for a specific project.