Does Builders Risk Cover Tools?

The ISO specimen distinguishes property becoming part of the building from contractor-owned equipment and tools, which are not necessarily covered project property. The NAIC glossary separately describes tools and equipment floaters for movable contractor property. A tool used to build the project is not necessarily insured merely because it is onsite. Check the definition of covered property, ownership and custody requirements, and any temporary-property extension. Ask whether hand tools, rented items, theft, and property in a vehicle need a separate inland marine or equipment policy. For movable tools, ask the contractor to show a scheduled tools or equipment floater and check whether it follows tools between jobs, vehicles, and storage. Builders risk may still cover a separate insured building loss caused by a covered event involving a tool, depending on the form, but that does not mean the tool itself is covered. Verify ownership, theft conditions, and any rented-item responsibility.