Florida Contractor Practice Exam

A normally purchased Builder's Risk policy covers all but which of the following?

1. Materials

2. Fire and Storm

3. Deeds and notes

4. Tools and materials

The correct answer is: Fire and Storm

In a Builder's Risk policy, which is specifically designed to cover buildings under construction, the coverage typically includes materials, tools, and equipment that are on the job site. This policy protects the structure itself and materials intended for the structure from various perils such as fire and storm damage. However, the aspect that is not covered under a standard Builder's Risk policy is not physical damage from perils like fire and storm; instead, it generally excludes documents and intangible assets like deeds and notes. These are not considered physical property and therefore are outside the scope of what this insurance would cover. So, the inclusion of fire and storm damage is crucial, as those are common risks that Builder's Risk is meant to mitigate, while deeds and notes do not fit the traditional physical asset coverage that this insurance is designed for.