Does Builders Risk Cover Tenant Improvements?

Builders risk can address property being built or altered, but a tenant improvement project can involve property owned by the landlord, tenant, or contractor. The ISO form’s covered-property terms and the declarations determine whose interest and which work are insured. Identify the lease obligations, ownership of installed fixtures, existing premises, and project value. Ask who must be a named insured or loss payee and whether the landlord’s property policy covers the base building. Check occupancy, phased handover, and the point when improvements are accepted or become part of the premises. The landlord’s building policy may cover the base structure while a tenant or contractor has a separate interest in improvements; the lease can allocate those duties. Have landlord and tenant compare their insurance clauses and identify who owns fixtures before installation. Verify named insureds, loss payees, project value, existing premises, and the point at which completed improvements become part of the landlord’s building.