Builders’ Risk Blanket Program

BLANKET PROGRAM
Summary of Coverage in AAIS 7052 Coverage Form

Course Of Construction Limit -- The most “we” pay for loss to any one “building or structure” is: $___________ Contingent Coverage Limit -- The most “we” pay for loss to any one “building or structure” is: $___________ Difference In Conditions Coverage Limit -- The most “we” pay for loss to any one “building or structure” is: $___________

Coverage Extensions*
Limits In form
Additional Debris Removal Expenses
$5,000
Emergency Removal
10 Days
Emergency Removal Expenses
$0,000
Fraud And Deceit
$50,000
Limited Fungus Coverage
$15,000
Waterborne Property
$10,000

Supplemental Coverages*
 
Expediting Expenses
$10,000
Expenses to Re-Erect Scaffolding
$5,000
Fire Department Service Charges
$1,000
Ordinance Or Law (Undamaged Parts Of A Building)
Coverage provided
Ordinance Or Law (Increased Cost To Repair And Cost To Demolish/Clear Site)
$50,000
Personal Property
$10,000
Pollutant Cleanup and Removal
$25,000
Rewards
$1,000
Sewer Backup
$10,000
Temporary Storage Locations
$10,000
Transit
$10,000
Trees, Shrubs, And Plants
$10,000

*Please contact your Underwriter if higher limits are required.
Contingent and Difference In Conditions Coverage

In IM 7052 and IM 7053, building projects are covered under Contingent Coverage and Difference In Conditions Coverage on the same blanket coverage basis as Course of Construction Coverage.

Contingent Coverage

For some construction projects, the contractor (the insured) is not responsible for obtaining builders’ risk insurance; insurance for the project is obtained by the owner of the building. After a loss, it may come to light that the owner’s builders’ risk insurance had been canceled or that limits of coverage are inadequate to fully cover the loss. IM 7052 and IM 7053 are designed to provide coverage for the insureds (the contractor’s) interest in the building project when the building owner fails to obtain or maintain agreed upon builders’ risk insurance.

Difference In Conditions

For some construction projects, the contractor (the insured) is not responsible for obtaining builders’ risk insurance for basic perils such as fire and vandalism; insurance for these perils is obtained by the owner of the building. IM 7052 and IM 7053 are designed to provide coverage for all perils except the basic perils that are insured under the owner’s builders’ risk policy. Of course, Difference In Conditions Coverage is also limited by the Perils Excluded section in each form.

What are your soft cost dollars covering?

Having the right amount of coverage for each exposure is important to you and your customer Additional Construction Expenses are limited to the following expenses as described in the Delay In Completion Coverage Part:

  • Advertising
  • Lease Administration
  • Design Fees
  • Professional Fees
  • Financing
  • Permit Fees

Additional Soft Costs are limited to the following soft costs as described in the Delay In Completion Coverage Part:

  • Interest Payments
  • Lease Expenses
  • Realty Taxes
  • Insurance Premiums

Mechanical Breakdown and testing Coverage

Your exposure to mechanical breakdown and testing should be clearly covered and given adequate limits for each part of the coverage.

Property Damage Limit should be specified
Testing - Coverage included as part of Property Damage
Delay In Completion can be included for this exposure within the property damage limit or as a standalone limit.

Green Buildings

Are you insuring a green building project? Have you included coverage for these exposures?

  • Indoor Air Quality
  • Recycling Debris
  • Recertification
  • Electricity Or Water Replacement
  • Alternate Certification Company

Ordinance and Law

If the code changes during your project and you have a loss can you cover the cost of the code changes?

  • Demolition Of Undamaged Parts Of A Building
  • Increased Cost To Repair And Cost To Demolish/Clear Site