When
Coverage Begins & Ends
When
coverage begins
Coverage begins once any
materials are delivered to the construction site. Materials are defined
as the supplies and resources that will be part of the complete structure
and include the foundation and footings.
For a reporting form policy,
a new start is covered only when all of the following conditions are met:
-
The start is reported on time
-
The start is reported properly,
and
-
The appropriate premium accompanies
the report.
When
coverage ends
The following conditions
will terminate coverage:
-
Once the insured’s interest
in the property ceases.
-
With annual reporting forms,
if the building is not re-reported and additional premium is not paid at
the end of 12 months from the month when the builder first reported the
start.
-
With monthly reporting forms,
if the building is not re-reported and additional premium is not paid at
the end of the month following the month when the builder last reported
the start.
-
Ninety days after occupancy
of a single- occupancy structure, unless building is being used as a model
home or is being used as a model home leaseback and the appropriate policy
is issued.
-
If the building is leased or
rented to others.
-
For multiple family dwellings,
when more than 50 percent is leased to or rented to others. For commercial
structures, when more than 75 percent is leased to or rented to others.
-
If the reported project is abandoned.