Which form is most commonly used for builder's risk insurance?

Builder's risk insurance is specifically designed to provide coverage for buildings under construction. The Completed Value Form is particularly relevant in this context because it offers coverage for the total value of the building upon completion. This form typically takes into account the agreed value at the start of the construction project, making it easier for both the insurer and the insured to manage risk and cover potential losses that could occur during the construction phase.

When using the Completed Value Form, the coverage is set at the value of the finished project rather than a fluctuating value, which is important because it simplifies claims and ensures that the builder is adequately protected against catastrophic loss aspects during construction. It provides a straightforward basis for determining losses as it correlates directly with the completed value of the construction project.

In contrast, other forms such as the Standard Policy Form or Modified Coverage Form often contain broader or different provisions that may not be as specifically tailored to the unique risks associated with the construction process, and therefore do not fit the builder's risk context as effectively as the Completed Value Form.