When does coverage begin under the builders risk form?

Coverage under the builders risk form typically begins on the date construction starts. This is because the builders risk insurance is specifically designed to cover buildings while they are under construction, which includes various risks such as theft, vandalism, and some types of damage that could occur during the building process.

Starting coverage on the date construction begins ensures that the property is protected as soon as work commences, reflecting the need for immediate insurance protection due to the inherent risks involved in construction activities. The policy safeguards against losses that could happen any time between the start of construction and the completion of the project, making it vital for contractors and property owners.

In contrast, other options like coverage upon completion or at the time of application do not accurately represent when the risk begins. Coverage upon completion would mean there is a gap in protection during the construction phase, while coverage at the time of application would imply an instantaneous effect regardless of when construction actual begins, which is not the intent of builders risk insurance. Thus, the correct understanding of when coverage starts emphasizes the protection needed as soon as construction is underway.