Installation Floater or Builders Risk?

January 25, 2016

My question concerns a coverage dispute as to when coverage on an ISO installation floater ceases. In this scenario, a contractor was constructing a structure. They were hired to construct a building for a landowner. They installed 75 percent of the roof trusses to be installed. That evening, high winds damaged the structure. Coverage was denied as those roof trusses were already installed and thus, coverage should be afforded on a builders risk policy at that point. The floater states, “Covered property does not include a. property on your premises unless intended to be installed at any described job site.”

Since these roof trusses were no longer intending to be installed (they had in fact been installed), coverage was not afforded. What is your opinion as to when coverage ceases on the installation floater and needs to be covered under a builders risk form?

Texas Subscriber

We agree that the loss would not be covered by the installation form. The ISO Installation Coverage form describes “covered property” as “property situated as specified in the Declarations for installation at a described premises.” So, once the property is installed, it is no longer for installation, but is part of the building or structure, which falls under the Builders Risk form. When the property is installed is when the coverage on the installation floater would end. If the other 25 percent of the trusses that were not installed were also damaged, they should be covered by the installation floater.

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