The Builders Risk Coverage Form is an insurance policy designed to protect property owners, contractors, and other parties involved in construction projects from financial loss caused by damages or theft of the insured property during the course of construction. This type of coverage is specifically tailored for buildings that are being built or renovated.
The Builders Risk Coverage Form typically provides coverage for the insured property, including structures, materials, equipment, and supplies on the construction site. It protects against a range of perils such as fire, windstorm, lightning, vandalism, theft, and other accidental physical damage. The coverage may also extend to include additional perils such as earthquakes, floods, and hurricanes, depending on the specific policy.
The policy is usually purchased by the property owner, although contractors and subcontractors may also obtain coverage to protect their interests. The coverage is typically in effect for the duration of the construction project, from the time construction begins until the project is completed or handed over to the owner.
In the event of a covered loss, the Builders Risk policy typically covers the cost to repair or replace the damaged property up to the policy limit. The policy may also cover other associated costs like debris removal, additional expenses incurred due to delays caused by covered perils, and other consequential damages.
It is important to note that the Builders Risk Coverage Form usually does not cover losses resulting from faulty design, poor workmanship, or faulty materials. These risks are typically addressed through separate professional liability or errors and omissions policies.
Overall, the Builders Risk Coverage Form provides essential protection for property owners and construction professionals against potential losses arising from damages or theft during construction, helping to ensure the successful completion of projects.
