Does Builders Risk Cover Lost Income?

Usually not ordinary lost income. The cited ISO form excludes delay and consequential loss, though an endorsement may cover selected expenses after covered physical damage; ask whether lost rent or sales are included. Oregon describes soft-cost coverage for some expenses caused by covered physical damage, including costs associated with delayed completion, but that is not a general promise to replace all income. Separate lost rent, anticipated sales, and operating income from financing or lease expenses. Ask whether the policy has a delay-in-completion or business-income endorsement, the covered trigger, waiting period, indemnity period, and scheduled limit. Compare this with any existing property or business-income insurance. A landlord’s rental-income or business-income policy may be relevant once the premises are operating, but it may not cover an unfinished project or a delay before operations begin. Ask whether the builders risk quote has a delay endorsement and whether lost rent, sales, or profit is an eligible loss. Check the physical-damage trigger, waiting period, indemnity period, and projected-income documentation.