Which of the following limitations affects occupancy and use in Builders Risk policies?

In Builders Risk policies, the limitation that most significantly affects occupancy and use is the need for permission for continued coverage. These policies are specifically designed to protect structures under construction, renovation, or repair. Coverage typically applies under certain conditions, and maintaining these conditions is essential for the validity of the policy.

When construction is completed or if the property transitions to a different use, it may require the policyholder to notify the insurer and seek permission for any changes in coverage. This is crucial because the nature of the work could lead to increased risks, thereby altering the insurer’s exposure. Therefore, without obtaining permission or making necessary adjustments, coverage can become void or restricted, which underscores the importance of informing the insurer of any changes in occupancy or use to maintain proper coverage.

The other options either do not reflect the critical nature of how occupancy affects coverage in Builders Risk policies or misinterpret the conditions under which coverage is impacted. In this context, understanding the necessity of communicating with the insurer regarding occupancy and use is fundamental to ensuring ongoing insurance protection during the construction phase.