Named Insured on Builders Risk Policy Entitled to Total Value of Loss

June 30, 2014

If the named insured on an inland marine builders risk policy is only the owner of the project, in the event of a loss, would the owner receive the total value of the loss? What if the owner has not yet paid the contractors for all of their work? Would the owner receive only the portion of the loss for which he has paid for or his insurable interest? Would it make a difference if the construction contract specifically required the owner to insure the building during the course of construction? Would this give the owner total insurable interest?

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