Question

Veronica is in the process of building an extra structure for the sole purpose of kiln firing her pottery. After 40 days of waiting for it to be completed, she decides to go ahead and begin using it, since the kiln is already set up, even though the interior drywall isn't completely finished. Her Builder's Risk Coverage Form is then terminated because:

a. interior drywall isn't covered under a Builder's Risk Coverage Form.
b. Veronica has now put the building to its intended use.
c. Builder's Risk policies are only good for 30 days.
d. the risk of fire voided the policy.

Answer 1

The correct answer is b. Veronica has now put the building to its intended use.

Step-by-step explanation:

The correct answer is b. Veronica has now put the building to its intended use.

Builder's Risk Coverage Forms provide insurance coverage to protect the property owner against risks during the construction or renovation of a building.

Typically, this coverage terminates once the building is in use or occupied. In this case, Veronica decided to start using the kiln even though the interior drywall wasn't completely finished. This act triggered the termination of her Builder's Risk Coverage Form, as she put the building to its intended use.