Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which of the following is a type of property covered by the Builder's Risk Policy?

1. Completed building structures

2. Landscaping and growing plants

3. Insurance agents office supplies

4. Residential furniture

The correct answer is: Landscaping and growing plants

The Builder's Risk Policy is designed to cover property that is under construction, which typically includes the materials, fixtures, and equipment needed for the building project. This type of policy aims to protect the investment in a construction project against risks such as theft, vandalism, or certain types of damage. Among the options given, landscaping and growing plants can be included in a Builder's Risk Policy, especially if they are part of the construction process and not yet completed. This could encompass trees, shrubs, and other plants that are intended to be part of the overall project but are still in their growth stages at the time of loss. This coverage may be specified in the policy, often referred to as coverage for "temporary work" or "landscape improvements." In contrast, completed building structures are usually covered under a standard property insurance policy rather than a Builder's Risk Policy, as the latter typically covers property still under construction. Insurance agents' office supplies and residential furniture also do not pertain to the construction process and therefore are outside the scope of a Builder's Risk Policy.