Work And Materials Clause
What Does Work And Materials Clause Mean?
A work and materials clause is a provision in a property insurance policy that allows the policyholder to store materials necessary for their business or work at the insured premises without jeopardizing their coverage. Standard fire policies often include an increased hazard clause, which can void coverage if a known increased hazard is present. However, a work and materials clause overrides this limitation, ensuring that the policy remains valid despite the presence of such materials.
Insuranceopedia Explains Work And Materials Clause
Property insurance policies typically exclude coverage for fire-related losses if the policyholder stores materials at the insured premises that increase the risk of fire. However, a work and materials clause provides an exception by covering such losses, as long as the materials are necessary for the policyholder’s work. This type of clause is especially beneficial for individuals whose occupations require the use or storage of materials that pose an increased fire hazard.
