Other Than Life (OTL) Practice Exam

Which of the following is not commonly included in a Builders risk policy?

1. Contents within the building

2. Equipment used for construction

3. Natural disasters

4. Unfinished structures

The correct answer is: Natural disasters

A Builders risk policy is specifically designed to cover buildings under construction, providing protection for materials, equipment, and structures that are in progress. The policy typically includes coverage for materials stored on-site and equipment used for construction, ensuring that those assets are protected against various risks. Natural disasters, while significant potential risks to a construction project, may not be automatically covered under a traditional Builders risk policy. Coverage for natural disasters often requires additional endorsements or specialized policies, as these events can entail considerable financial impacts. As such, it's important for builders to review their insurance plans to confirm that they have the desired natural disaster coverage. The other options, such as contents within the building, equipment used for construction, and unfinished structures, are typically covered under a Builders risk policy. Therefore, the exclusion of coverage for natural disasters aligns with the standard parameters of a Builders risk policy.