Does Builders Risk Cover Faulty Workmanship?

The illustrative ISO form excludes loss caused by faulty or defective workmanship, design, construction, renovation, or materials. Its wording also addresses ensuing loss, so damage that follows a defect may not have the same treatment as repairing the defective component. The policy language controls whether a resulting fire, collapse, or other damage remains covered. Ask for the exact exclusion and ensuing-loss wording, and check whether the quote offers a buyback or limited resultant-damage endorsement. Keep contractor warranty obligations and liability insurance separate from first-party project property coverage. A contractor’s general liability policy is not automatically a warranty for the contractor’s own defective work; its terms govern any claim for resulting damage to other property. Ask the broker to coordinate that policy with the builders risk form, and request an example in writing of how the proposed wording treats repair of the bad work versus ensuing damage to separate insured property.