Insurance & LiensQuestion 1482 of 1605
'Builder's risk' insurance (also called course-of-construction insurance) primarily protects:
a.The structure and materials under construction against fire, theft, wind, and similar perils during the project
b.The owner's permanent homeowner liability after occupancy
c.The contractor's liability to injured third parties
d.The contractor's employees
Explanation
Builder's risk (course-of-construction) insurance covers the building and materials while under construction against physical loss from perils such as fire, vandalism, theft, and wind. It is property coverage for the work itself, distinct from liability coverage.
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Related questions on this topic
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)