Common use of Builders All Risk Insurance Clause in Contracts

Builders All Risk Insurance. From and after the issuance of the Notice to Proceed, Owner shall procure or cause to be procured and maintained all-risk builder’s insurance covering physical loss or damage to the Scope of Work. Coverage shall include, fire, explosion, extended coverage, expediting expense and extra expense, collapse, earthquake, flood, hurricane, volcanic action, strikes, riot, civil commotion (but shall exclude terrorism) and comprehensive boiler and machinery (including electrical injury and mechanical breakdown). Coverage shall be written on a replacement cost basis for the full completed value of the Scope of Work and contain an agreed amount endorsement waiving any coinsurance penalty. There shall be no exclusion for resultant damage caused by faulty workmanship, design or materials. Flood, earthquake, windstorm and volcanic action shall be provided at maximum limits commercially available at a reasonable cost, as agreed by Owner. Such policy shall remain in full force and effect until the earlier of “substantial completion” (according to the ECC) or care, custody and control of the Plant is transferred to Owner and covered by the all risk property policy.