Builder’s Risk Insurance

Builder’s risk insurance can be defined as coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.

The term “builder” is misleading because insured can include not only the contractor(s) performing the work, but the ultimate owner, lending institution and others. Suppliers of materials, although having an insurable interest in the property being used in the construction, are not normally candidates for builder’s risk insurance.

 

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