Does Builders Risk Cover Theft?

An illustrative ISO builders risk form addresses theft, but excludes some situations such as theft from an unlocked unattended vehicle and unexplained disappearance. Oregon’s public clause guidance also discusses theft coverage for installed materials, while distinguishing tools and other property. Coverage can depend on who owns the materials, where they are located, whether the site is secured, and whether the policy names the party suffering the loss. Check theft wording, any vacancy or enclosure condition, offsite and transit limits, deductible, and exclusions for employee or subcontractor dishonesty. Where tools or equipment are stolen, the contractor’s inland marine or tools floater may be the more relevant policy; it will not necessarily insure the owner’s building materials. Compare which party owns each item with the named insured and loss-payee wording, and ask about security warranties, theft sublimits, deductibles, and any materials not yet delivered to the site.