Texas General Lines — Property and CasualtyCommercial LinesEasy
A general contractor is constructing a new commercial building. They need coverage for the building materials, fixtures, and equipment being installed, as well as the value of the structure itself while it is under construction. Which type of commercial property coverage would be most appropriate?
- ACommercial Property - Building and Personal Property Coverage Form
- BBusiness Income and Extra Expense Coverage
- CCondominium Association Coverage Form
- DBuilders Risk Coverage Form
Show answer & explanationAnswer & explanation
Correct answer: D. Builders Risk Coverage Form
Builders Risk coverage is specifically designed to protect buildings and structures under construction, including materials and equipment associated with the construction project.
Why the other options are wrong
- A. This form is for completed buildings and their contents, not structures under construction.
- B. This covers loss of income and extra expenses due to covered perils, not the physical property under construction.
- C. This form is for condominium associations, covering common elements and property of the association, not a new commercial build.
Builders Risk Coverage
A specialized property insurance policy that covers buildings and structures while they are under construction, including materials and equipment on-site and intended for the project.
- Covers structures during construction
- Includes materials, supplies, and equipment
- Can be written for owner or contractor
Memory trick: Risk for Builders: Building a new future, protect the present.