1. Forms
  2. CP
  3. CP-00-20

What it does

CP 00 20 insures "Building Under Construction", meaning the building or structure described in the Declarations while in the course of construction. It covers:

  • Foundations.
  • Fixtures and machinery, equipment used to service the building, and the insured's building materials and supplies used for construction, when intended to be permanently located in or on the building or within 100 feet of the premises.
  • Temporary structures built or assembled on site, such as cribbing, scaffolding and construction forms, if not covered by other insurance.

Perils come from the attached Causes of Loss form, and the Commercial Property Conditions and Common Policy Conditions complete the coverage part. Land and water are not covered. Outdoor lawns, trees, shrubs and plants, antennas and detached signs are not covered.

Key provisions (10 12 edition)

  • Need for Adequate Insurance: instead of coinsurance, the form pays no greater share of a loss than the limit bears to the building's value on the date of completion. Builders risk is therefore written to the full completed value.
  • Additional coverages parallel CP 00 10: debris removal (with an additional $25,000), preservation of property, a $1,000 fire department service charge, and $10,000 pollutant clean-up.
  • Extensions: building materials and supplies of others ($5,000 per premises) and sod, trees, shrubs and plants ($1,000, no more than $250 per item).
  • When Coverage Ceases: at expiration or cancellation, acceptance by the purchaser, end of the insured's interest, or abandonment of construction. Unless the insurer agrees otherwise in writing, it also ends 90 days after construction is complete, or 60 days after the building is occupied in whole or in part or put to its intended use.
  • A mortgageholders condition protects construction lenders.

Quoting and selling notes

  • Set the limit at total completed value, including materials and labor, and confirm whether soft costs or delay in completion are needed. Those require other forms or a specialty market.
  • Theft of materials is restricted by the Causes of Loss form. Builders Risk – Theft of Building Materials, Fixtures, Machinery, Equipment (CP 11 21) expands it.
  • Watch the occupancy trigger: partial move-ins can end coverage 60 days later. Arrange permanent property coverage before occupancy.
  • When the Standard Property Policy insures a building under construction, CP 11 99 (Builders Risk Changes – Standard Property Policy) applies.