Builders Risk Coverage Form

DEFINITION of 'Builders Risk Coverage Form'

An insurance policy that covers residential and commercial structures while they are under construction or being remodeled or renovated. Covered building components include foundations, fixtures, machinery, equipment used to service the building, building materials and supplies, and debris removal in the event of a loss.

The policy may not include land, landscaping, satellites or antennas, construction materials in transit, scaffolding, construction trailers, theft of materials from the job site and signs that are not attached to the building. It may be possible to obtain additional coverage for things not included in the standard policy.

BREAKING DOWN 'Builders Risk Coverage Form'

The policy must be purchased when the project is less than 30% complete and coverage ends when the owner takes possession, 90 days have passed since the completion of construction, or the insured abandons the project with no plans to complete it.

The named insured will usually be the property's contractor or developer, but in some cases it is the building owner or homeowner.

This type of policy often requires builders to have a minimum amount of experience (such as 2-3 years).

RELATED TERMS
  1. COPE Insurance

    A set of risks that property insurance underwriters review when ...
  2. Debris Removal Insurance

    A section of a property insurance policy that provides reimbursement ...
  3. Building Ordinance Coverage

    Insurance that covers the increased cost of repairing a damaged ...
  4. Building And Personal Property ...

    The document that details the provisions of a type of business ...
  5. Advance Loss Of Profit (ALOP) Insurance

    An insurance policy that provides coverage for financial losses ...
  6. Delay In Completion Coverage

    Insurance coverage that protects the insured against costs arising ...
Related Articles
  1. Entrepreneurship

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  2. Insurance

    How Much Homeowners Insurance Should You Carry?

    This breakdown of coverage into its component parts will provide the answer.
  3. Credit & Loans

    Getting A Mortgage When Building Your Own Home

    It's much harder to get a loan when you're building a home, not moving into one. Here's where to look and what to expect.
  4. Savings

    Top 10 Fastest Growing Industries in the United States

    Six of the ten fastest growing industries are directly related to new residential construction.
  5. Insurance

    Have The Right Condo Insurance?

    How well does your condo's master-insurance policy protect you? Here's why you'll probably need separate insurance for your own unit and possessions.
  6. Home & Auto

    Will Your Home Remodel Pay Off?

    Some renovations will mean a bigger sale price on your home, while others will just cost you.
  7. Home & Auto

    Why Building a House Is So Expensive Now

    Building a house can be very costly, so it’s best to understand all the factors that go into the equation before proceeding. Here’s what you need to know.
  8. Home & Auto

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  9. Insurance

    The Best Way to Insure Your Jewelry

    What you need to know to keep those baubles, bangles and beads safe.
  10. Insurance

    How to Shop for Home Insurance

    Tips for getting the best protection for your place and possessions.
RELATED FAQS
  1. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
  2. What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider ... Read Answer >>
  3. How does the 80% rule for home insurance work, and how do capital improvements affect ...

    The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the ... Read Answer >>
  4. What is a convertible insurance policy?

    A convertible insurance policy is a term usually related to life insurance. To understand a convertible policy, you must ... Read Answer >>
  5. What are the differences between the installment method and percentage of completion ...

    Learn how businesses recognize revenues and report them under the installment method and percentage-of-completion method, ... Read Answer >>
  6. Does renters insurance cover car theft?

    Learn how the theft of a vehicle is not covered under a renters insurance policy but any personal property stolen from a ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center