BUILDER'S RISK INSURANCE

 

Builder's risk insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction.Builder's risk insurance is "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."

Buildings are subject to many different risks while under construction. They may catch fire, be damaged by high winds, or fall victim to other force majeure. A principle of common law is that any new construction or other improvement to land becomes property of the owner of the land - the title holder - once there has been an "improvement" to the owner's site. Builder's risk insurance indemnifies against some of these losses.

Builder’s risk insurance usually indemnifies against losses due to fire, vandalism, lightning, wind, earthquake and similar forces.

 

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