Common use of Builder’s Risk Insurance Clause in Contracts

Builder’s Risk Insurance. Unless excluded by the Special Conditions of this contract, the Contractor shall provide builder’s risk insurance during the progress of the work and until final acceptance by the Department upon completion of the contract. It shall be “All Risk” (including but not limited to earthquake, windstorm and flood damage) completed value insurance coverage on all completed work and work in progress to the full replacement value thereof. Such insurance shall include the Department as an additional named insured. The Contractor shall submit to the Project Manager for its approval all items deemed to be uninsurable. The policy may provide for a deductible in an amount of up to twenty five percent (25%) of the amount insured by the policy. With respect to all losses up to any deductible amount, the relationship between the Contractor and the Department shall be that of insurer and the additional insured respectively as if no deductible existed. The Contractor is responsible for theft, if any item of the contract is stolen prior to, or after installation, until the work is accepted by the Department. Progress payment does not constitute acceptance.