Insurance coverage for buildings currently under construction.

A variation of property coverage specially applicable to construction projects. It is commonly written in an amount to cover the value of the structure when completed. The premium charged takes into account that values at risk increase gradually over the term of the Policy.

Builders risk insurance is a form of property insurance designed to cover buildings while under construction or undergoing major renovation. Generally, the building is not occupied during the renovation.Coverage can be written on a named peril or all-risk basis and includes the structure itself and materials the job site. Materials not intended to become a permanent part of the structure (such as scaffolding) and temporary structures (such as construction trailers) are commonly not covered.The amount of coverage is generally the full replacement cost of the completed structure. Premiums are reduced to reflect the gradual increase in value. Another method is the builders risk reporting form where the contractor reports the value of the construction each month and pays accordingly. Certain

“soft costs” can also be added by endorsement. Soft costs include a loss of revenue because of a delayed business opening, increased expenses to expedite repair/renovation, and failure of the contractor to comply with construction codes.

Builders risk policies vary widely in wording and form. Whether an insured is considering a builders risk when building a home or a major commercial construction project, it is important to consult an insurance professional familiar with this type of insurance.

Burglary

Burglary and theft insurance can be bought as a standalone policy but is usually combined with other forms of insurance such as the homeowners or business multiperil policy. Burglary is the act of breaking into a building or automobile while it is unoccupied. For coverage to apply there must be visible signs of forced entry.

Theft

Theft is any act of stealing and does not require signs of forced entry. There does have to be a presumption that the property was stolen, however.

Robbery is the act of taking someone’s property against his or her will while the individual is present.

Robbery

A broader from of this coverage includes mysterious disappearance. If this coverage is added, there is no presumption of theft needed. Coverage is provided if the was there once and is not there now. Below are

examples of each:

If someone breaks into an insured’s unoccupied home using a crowbar, doing substantial damage to the exterior door, and takes a diamond ring, the ring is covered under the burglary section of the policy. If the same thief, coming through an unlocked door nto the insured’s unoccupied home and takes the ring

after ransacking the room where the ring was, the coverage falls under the theft definition.

The same ring, stolen by the thief who enters the nome while the insured is present and takes the ring with a threat of violence, is covered under the robbery ection.

Mysterious disappearance is much broader and pays the ring if the insured had it at the time it was inured and cannot find it. It may have been lost or stolen.

The Policy covers vessels under construction from the time of laying the keel until the time of delivery (including trails) to the buyers. The conditions are those contained in the Institute Clauses for Builders’ Risk dated 01.06.1986. The policy period can be longer than 12 months and the sum insured should the actual completed value or contract value, whichever is higher.

Refers to municipal or other governmental ordinances regulating the type of construction of buildings within its jurisdiction.

To be rated as per Category “Building under Course of Construction” under Industrial/Manufacturing Risks of Standard Fire and Special Perils Policy (Material Risks).