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. Advance Loss Of Profit (ALOP) Insurance

    An insurance policy that provides coverage for financial losses ...
  5. Building And Personal Property ...

    The document that details the provisions of a type of business ...
  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. Home & Auto

    Intro To Insurance: Property And Casualty Insurance

    By Cathy ParetoProperty and casualty insurance is insurance that protects against property losses to your business, home or car and/or against legal liability that may result from injury or damage ...
  6. 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.
  7. Professionals

    Homeowner Endorsements and Auto Insurance

    Homeowner Endorsements and Auto Insurance
  8. 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.
  9. Professionals

    Introduction to Personal Insurance

    Introduction to Personal Insurance
  10. 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.
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. What is term insurance?

    Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" ... Read Answer >>
  4. 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 >>
  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. 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 >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center