Georgia Adjuster Practice Test

All of the following would be covered under a Builders Risk Policy EXCEPT:

1. Completed structures

2. Construction materials on site

3. Temporary structures

4. A prospective buyer

The correct answer is: A prospective buyer

A Builders Risk Policy is designed to provide coverage for buildings under construction. It typically includes coverage for materials, fixtures, and equipment intended for use in the construction or renovation of a building. Completed structures are not covered under a Builders Risk Policy because this type of insurance applies specifically to buildings that are still under construction. Once the construction is completed, the policy usually ceases to be in force, and a different form of insurance, such as a commercial property policy, would take effect. Construction materials on site and temporary structures are both integral parts of a construction project and are generally covered under this policy. Construction materials, such as lumber and roofing, that are stored on the site are protected against risks like theft or damage. Temporary structures, which can include scaffolding or temporary office trailers, are also typically included in coverage as they are essential to the construction process. A prospective buyer, while interested in the property, is not something that the Builders Risk Policy is designed to cover. The policy is focused on the physical aspects of the construction project rather than on parties interested in purchasing the property. This distinction highlights why the correct answer identifies the prospective buyer as the exception.