What Does Builders Risk Coverage Form Mean?
Builders risk coverage form is a type of insurance policy that protects against financial losses during a construction project involving a residential or commercial structure. It generally covers the contractor or developer and might cover the owner as well.
Insuranceopedia Explains Builders Risk Coverage Form
Builders risk coverage form must be purchased before 30 percent of the construction, remodeling, or renovation is completed. Eligibility requirements often include a minimum amount of experience, such as 3 years, for builders. These policies generally cover fixtures, machinery, foundations, equipment, building materials and supplies, and debris removal in case of a loss. Exclusions may include landscaping, satellites or antennas, construction trailers, theft of materials, and standalone signs. Coverage continues for 90 days after completion or until the owner takes possession of the structure. It also ends in the event insured abandons the project.