Does Builders Risk Cover Construction Defects?
Usually not for correcting defective work itself; separate resulting property damage may be covered if the policy’s ensuing-loss wording preserves it.
Usually not for the cost to correct defective work itself. The cited ISO form excludes construction and workmanship defects, although its ensuing-loss wording may preserve coverage for separate resulting physical damage.
Ask the insurer to identify the defect exclusion, any resulting-loss exception or endorsement, and whether testing changes the treatment. Compare that answer with the contractor’s warranty obligations and any architect or engineer professional liability coverage.
