Does Builders Risk Cover Defective Materials?

The ISO specimen excludes loss caused by defective materials used in construction or renovation. The relevant question may be whether a covered cause of loss then damages other covered property, under the form’s ensuing-loss wording. Check whether the exclusion applies to the specific component, the entire project, or only the cost of making good. Ask about removal and replacement expense, testing costs, and any resultant-damage endorsement. Also identify the supplier or installer’s warranty and whether any separate liability coverage could respond to a third-party claim. A supplier warranty may be the route for replacing a faulty product, while a separate property claim for other damaged components depends on the policy’s ensuing-loss wording. Ask the insurer whether removal, access, testing, and matching replacement materials count as covered damage or defect-correction expense, and check how the form treats damage to the defective item itself.