Insurance & LiensQuestion 573 of 690
On a builder's risk policy covering a new commercial building during construction, which of the following losses is MOST LIKELY excluded from coverage?
a.Fire damage to framing lumber on site
b.Theft of installed copper plumbing
c.Faulty workmanship of the contractor that causes the defective component itself to fail
d.Wind damage to the partially completed structure
Explanation
Builder's risk policies cover physical loss to the project (fire, theft, vandalism, wind, etc.), but standard forms exclude the cost of repairing or replacing components that fail due to the contractor's own faulty workmanship. Resulting damage to other property may still be covered, but the defective work itself is not.
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