Which of the following is not specifically covered under Builders Risk policies?

A Builders Risk policy is designed specifically for properties under construction, providing coverage for materials, fixtures, and equipment that are part of the construction process. However, certain risks are not covered under these policies.

Poor workmanship is not covered because Builders Risk policies are intended to insure against physical loss or damage to the structure and its components, rather than the inherent defects in how the work is performed. If a construction worker does not perform their job to the required standard, this is considered a workmanship issue rather than a peril that leads to physical loss, which is outside the scope of the coverage.

Damage from seismic activity, mechanical breakdowns, and theft of construction materials can potentially be covered under certain conditions within a Builders Risk policy. However, poor workmanship directly relates to the quality of the work performed and does not fall under the categories of risks that Builders Risk policies are designed to protect against. This distinction clarifies why this answer is the correct choice.