What is an example of a builder's risk policy?
For example, a fire sweeps through a construction site, scorching the siding of an unfinished building. To replace the siding, the general contractor makes a claim on their builder's risk policy and is reimbursed for the cost of repairs.
Which two of the following are typically covered under a builder's risk insurance policy?
While exact coverages and limitations vary between providers, comprehensive builders risk policies may offer coverage for the following (but not limited to): Property damage. Theft. Vandalism.
What is the most common additional coverage included in a builders risk policy?
The builders risk policy will cover your home and any additional structures on site. Perils like theft, fire, vandalism, wind, lightening, and explosions are all covered. Flood and earthquake insurance would need to be purchased in addition to the builders risk policy.
What does the builder's risk coverage form not cover?
A builders risk coverage form provides protection against losses on the building, equipment, and supplies, but not to accidents on the job, the land, scaffolding, and theft. The policy does not cover war, nuclear hazards, extreme weather, or government seizure.
What is the difference between builders risk and property insurance?
Unlike commercial property insurance, which covers finished buildings and their contents, a builder's risk insurance policy protects buildings and structures while they're under construction. Builder's risk insurance is a temporary policy issued for a specific project that covers the course of construction.