When does coverage begin for a builder's risk insurance form?

Builder's risk insurance provides coverage for buildings under construction, and the coverage typically begins when construction starts. This means that coverage is effective from the moment construction activities commence above the lowest basement floor. This timing ensures that any damages occurring during the actual construction process are covered, protecting the builder or property owner from financial loss due to unforeseen events like fire, theft, or vandalism.

Starting coverage at the date of policy purchase could leave a significant gap if construction has not yet begun. Similarly, linking coverage to the completion of construction or the acquiring of permits does not align with the purpose of builder's risk insurance, which is designed specifically to cover the construction period itself. Thus, the correct understanding of when the policy comes into effect is pivotal for anyone involved in construction projects, ensuring that they are adequately protected from the start of their work.