Georgia Adjuster Practice Test

Which statement about Builders' Risk coverage form is NOT true?

1. It covers theft during construction

2. It applies to structures only

3. It covers building materials on-site

4. It does not cover personal property of workers

The correct answer is: It applies to structures only

The Builders' Risk coverage form is primarily designed to provide coverage for buildings under construction, which includes not just the structures themselves but also specific elements related to the construction process. The form is intended to protect against a variety of risks such as theft, fire, and certain types of damage that can occur during the construction phase. The statement that it applies to structures only is not accurate because Builders' Risk coverage also extends to materials and supplies intended for use in the construction process. This includes items that are on-site, such as building materials and equipment. Therefore, the assertion that it applies only to structures fails to recognize the comprehensive nature of the coverage, which encompasses more than just the physical building. In summary, the misconception lies in the narrow view of the coverage being limited strictly to structures. Builders' Risk insurance provides a broader scope that includes comprehensive protection for various aspects related to a construction project.