Builders Risk Coverage Form

What Does Builders Risk Coverage Form Mean?

A builders risk coverage form is a type of insurance policy designed to protect against financial losses that may occur during a construction project involving either a residential or commercial structure. This policy typically covers the contractor or developer and may also extend coverage to the property owner.

Insuranceopedia Explains Builders Risk Coverage Form

A 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 for builders, such as three years. These policies typically cover fixtures, machinery, foundations, equipment, building materials and supplies, as well as debris removal in the event of a loss. Common exclusions include landscaping, satellites or antennas, construction trailers, theft of materials, and standalone signs. Coverage generally continues for 90 days after completion or until the owner takes possession of the structure. It also ends if the insured abandons the project.