Final answer:
Coverage under a Builder's Risk Policy normally ceases when either the construction project is completed or when there is a change in ownership of the property. These policies are meant to protect against insurable risks during the construction process and are not intended to cover project management issues.
Step-by-step explanation:
Coverage under a Builder's Risk Policy normally ceases in two main instances: a) Completion of Construction and b) Change of Ownership. These insurance policies are designed to cover various risks associated with the construction process, such as damage to the property or materials from covered events. Once the construction project has been completed, or the property changes hands, the policy's purpose has been fulfilled, and coverage typically ends.
Builder's Risk Policies are a form of property insurance essential for managing the economic risks in construction projects, and their main purpose is to protect the interests of the property owner and the contractor against unexpected incidents that cause damage to the property or materials.
These policies do not generally cover issues like inclement weather, budget overruns, material shortages, or labor strikes, as these may be considered project management concerns rather than insurable risks.