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Major Endorsements for Use with Builders Risk Policy

Summary: Several endorsements are available that modify coverage under the builders risk policy in various manners. The following endorsements are discussed here: Builders Risk Reporting form (CP 11 05 04 02 ); Builders Risk Renovations (CP 11 13 06 95 ); Separate or Subcontractors Interests (CP 11 14 07 88 or CP 11 15 07 88 ); and Collapse During Construction (CP 11 20 10 00 ).

Topics covered: Builders risk reporting form Builders risk renovations Separate or subcontractors exclusion Separate or subcontractors coverage Collapse during construction

Builders Risk Reporting Form

The Builders Risk Reporting Form, CP 11 05 04 02, is used to modify the Builders Risk Coverage Form or the Builders Risk Changes Standard Property policy.

A.When this endorsement is attached to the BUILDERS’ RISK CHANGES – STANDARD PROPERTY POLICY CP 11 99 the term Coverage Part in this endorsement is replaced by the term Policy.

B.You must:

1.Within thirty days of the inception of the Coverage Part, select a day of the month on which reports of value will be effective.

2.Within thirty days of the effective date of the report of value, file with us a report each month of the actual cash value of the Covered Property.

C.If, at the time of loss:

1.You have failed to file with us reports of value as required, we will not pay more than the value stated in the last report filed before the loss.

2.You have not filed any reports, we will not pay more than the actual cash value as of the inception date of this Coverage Part.

D.Full Reporting. The NEED FOR ADEQUATE INSURANCE Additional Condition is replaced by the following:

We will not pay more for any loss than the proportion the values last reported before the loss bears to the actual cash value of the Covered Property on the effective date of the report.

E.We will not pay more than our Limit of Insurance even if the values reported exceed that limit.

F.Premium Adjustment

1.The initial premium for this insurance is based on the actual cash value of the Covered Property on the inception date of this Coverage Part.

2.For each report based on the change in values as shown in your report, we will:

a.Charge additional premium; or

b.Credit return premium.

The due date for any additional premium is the date shown as the due date on the bill.

3.The charge or credit will be for the period from the midpoint between the effective dates of the current and last previous report due to the expiration date of this Coverage Part.

* Information required to complete this Schedule, if not shown on this endorsement, will be shown in the Declarations.

Analysis

The builders risk reporting form, CP 11 05, may be attached to CP 00 20 and CP 11 99. The actual cash value of insurable property at the time it is brought on the premises is used to determine the initial premium. This amount reflects the value at the beginning of the policy periodnot the completed value of the building as on CP 00 20, allowing the insured to tie premium payments more closely to the values that are actually at risk.

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