BUILDERS RISK:
THE DEVIL IS IN THE EXCLUSIONS

1. Property Insurance as Distinguished from Liability Insurance
1. First Party v. Third Party Insurance
2. Insuring Agreement
3. Purpose of the Builders Risk Policy
4. Which Insurance Applies?; Other Insurance/Primary Insurance Clauses
2. Subrogation Under the Builders Risk Policy
1. General Rule - No Subrogation Against Insureds
2. Exception - "As Interests May Appear"
3. Waiver of Subrogation
4. Insurance Applicable to the Work
5. Other Insurance on Property Adjacent to the Site
6. Loss of Use
7. Suggested Contract Clause
3. Contractual Requirements
1. Standard Clauses
2. Applicability to Cost Reimbursable Contracts
3. Failure to Procure Insurance is a Breach of Contract
4. Requirements for Coverage
1. Physical Loss
2. Fortuity - Accident
3. Property Covered
4. Additional Coverages
5. Insurable Interest
5. What is Excluded?
1. Faulty Work or Design
2. Exception to Faulty Work / Design Exclusion
3. Latent Defects
4. Water Related Exclusions
5. Subsidence, Settlement and Earth Movement
6. Loss of Use or Occupancy or Consequential Loss
7. Liquidated Damages
8. Delay Damages
9. Directions of a Municipal Authority
10. Warranty or Guaranty
11. Pollution
12. Terrorism
13. Collapse
6. Duration of Coverage
7. Proving a Case Against a Builder's Risk Carrier
1. Liberal Interpretation of Policies
2. Texas Law - Causation
3. Other Jurisdictions
4. Manifestation of Loss
5. Prompt Payment of Claims Under Texas Law

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