Does Builders Risk Cover Lost Income?

The ISO builders risk specimen excludes delay and consequential loss. Oregon describes soft-cost coverage for some expenses caused by covered physical damage, including costs associated with delayed completion, but that is not a general promise to replace all income. Separate lost rent, anticipated sales, and operating income from financing or lease expenses. Ask whether the policy has a delay-in-completion or business-income endorsement, the covered trigger, waiting period, indemnity period, and scheduled limit. Compare this with any existing property or business-income insurance. A landlord’s rental-income or business-income policy may be relevant once the premises are operating, but it may not cover an unfinished project or a delay before operations begin. Ask whether the builders risk quote has a delay endorsement and whether lost rent, sales, or profit is an eligible loss. Check the physical-damage trigger, waiting period, indemnity period, and projected-income documentation.