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Insurance & Bondingaka: course of construction insuranceaka: installation floater

Builder's Risk Insurance

In Plain English

Insurance that protects a building while it's being built.

Definition

Builder's risk insurance is a specialized form of property insurance that covers a building under construction against damage from events such as fire, wind, vandalism, and theft. The policy typically covers the structure, materials on-site, and materials in transit. Coverage begins at the start of construction and ends when the project is substantially complete and occupied.

Example

A developer purchases a builder's risk policy before breaking ground on a $10 million office building to protect against fire or storm damage during the 18-month construction period.

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