What coverage does the builders risk form provide?

The builders risk form is specifically designed to provide coverage for buildings that are under construction. This type of insurance protects a structure as it is being built, covering risks such as damage from fire, vandalism, theft, and certain weather-related incidents during the construction phase. It is important for contractors and builders to have this coverage, as it ensures that they are financially protected against unforeseen events that could damage the property before it is completed.

This focus on construction rather than completed buildings is key; once a building is finished, a different type of insurance, such as a homeowners or commercial property policy, would come into effect. The builders risk form does not cover materials meant for resale, nor does it provide general liability coverage for accidents occurring on the construction site. It's tailored specifically to meet the needs inherent to ongoing construction projects.