What is true regarding the fire department service charge under the builders risk form?

The fire department service charge under the builders risk form is classified as an additional coverage. This means that it is not included as part of the basic coverage provided by the policy. Instead, it offers an additional layer of protection that applies in specific situations where the fire department responds to a fire at a construction site.

Having this charge as an additional coverage allows the property owner or contractor to benefit from financial assistance linked to the expenses incurred when the fire department is called out to combat a fire. The costs associated with the fire department's response can be significant, thus providing this coverage adds vital protection for those engaging in construction activities.

In contrast, basic coverage generally focuses on protecting the physical structure and materials on-site from risks such as fire, theft, or vandalism, while additional coverages enhance that protection to cover specific incidents or damages that may not be included in the primary terms of the policy. This distinction helps policyholders ensure comprehensive risk management specific to their project needs.