What is the primary purpose of a Builders Risk Coverage Form?

The primary purpose of a Builders Risk Coverage Form is to cover buildings under construction from various risks. This type of insurance is specifically designed to protect residential and commercial structures while they are being built or renovated. It typically includes coverage for damages due to fire, vandalism, theft, and certain weather events.

Builders risk coverage is essential for contractors, property owners, and developers as it ensures financial protection in case of a loss during the construction phase. It is particularly vital since completed structures are often vulnerable to various perils that could arise during the building process, and this policy addresses such specific exposures.

While protecting against the theft of tools and equipment, covering liability claims during construction, or providing financial support for construction delays are important aspects related to construction projects, they are not the primary focus of a Builders Risk Coverage Form. These areas require different types of insurance or coverage forms to adequately address the respective risks involved.