Question

Which of the following events would trigger the end to a commercial property Builders Risk Coverage Form?

Option 1: Completion of construction and occupancy

Option 2: Change in the building's color scheme

Option 3: Addition of temporary structures on the property

Option 4: Minor alterations to interior design

Answer 1

Completion of construction and occupancy would end a Builders Risk Coverage Form, as this insurance is tailored to cover risks during the construction phase and is no longer needed once the building is in use.

Step-by-step explanation:

The end to a commercial property Builders Risk Coverage Form is typically triggered by specific events relating to the construction process and the use of the property. Among the options provided, Option 1: Completion of construction and occupancy would trigger the end to the Builders Risk Coverage. This is because Builders Risk insurance is designed to cover risks associated with the construction process itself.

Once the construction is complete and the building is being used or occupied, the policy has served its purpose, and the coverage would generally end. The other options listed, such as a change in the building's color scheme, the addition of temporary structures, or minor alterations to interior design would not typically end the coverage, as these events are not substantive enough to alter the risk profile the policy was designed to address.