What type of coverage form is used for buildings that are currently under construction?

The Builder's risk coverage form is specifically designed to protect buildings and structures while they are under construction. This type of insurance provides coverage for various risks associated with the construction process, including damage due to fire, vandalism, theft, and certain natural disasters. It ensures that the investing parties—such as the property owner, contractor, and subcontractors—are protected from financial loss during the construction phase.

This form is crucial because standard property insurance policies typically exclude coverage for structures that are not yet complete. Builder's risk insurance fills this gap by offering broad protection tailored to the unique risks associated with construction, thereby giving stakeholders peace of mind during the project.

In contrast, general liability coverage protects against claims of bodily injury or property damage resulting from business operations, rather than focusing specifically on the construction of the building. Property damage coverage is a broader insurance category that does not specifically address the needs of ongoing construction projects. Contractor's equipment coverage, while important, mainly secures the tools and equipment used by contractors rather than the structure itself during its construction phase.