What additional exclusions are typically found in a Builders Risk policy?

A Builders Risk policy is designed to provide coverage for buildings under construction, but it typically includes specific exclusions that are important to understand. An additional exclusion often found in such policies is related to rental income losses. This means that if the property being built is intended for rental purposes, and there is a delay or other issues that prevent it from being rented, the policy will not cover the loss of income that would have been generated.

This exclusion is significant because it emphasizes that Builders Risk policies focus primarily on the physical elements of construction rather than the financial outcomes associated with rental activities. The policy is tailored to cover risks directly related to the construction process, such as damage to the structure itself, but it does not extend to loss of income that can occur due to delays or challenges in the construction timeline.

In contrast, other aspects such as direct labor costs, construction delays, and equipment damages may be covered or managed under different types of insurance policies or provisions within the Builders Risk policy itself, making the focus on rental income losses particularly relevant as an exclusion. Understanding these exclusions is crucial for anyone involved in construction or real estate to ensure proper risk management and adequate protection.