Builders risk is a standard form of insurance coverage that protects a building under construction or renovation from various types of damage and losses, but, like any other insurance policy, it has a number of exclusions.
Typically, according to The Hartford insurance company, builders risk includes coverage for events such as third-party theft, hurricanes and fire, although coverage can vary from project to project and from insurer to insurer. Some common exclusions include employee theft, ordinary wear and tear and damages from faulty design and workmanship.
