Minnesota Real Estate Exam Practice Question
Which of the following is covered under the builder's risk coverage form?
Correct Answer: D
Rationale: Builder's risk coverage is designed to protect materials and structures during construction. Lumber stored on-site for framing is explicitly covered, as it is essential to the project and vulnerable to damage.
Option A, a contractor's pickup truck, is typically covered under an auto insurance policy, not builder's risk. Option B, contractor's tools, are usually covered under a separate equipment insurance policy rather than builder's risk. Option C, a sign advertising the contractor's work, may not be covered as it is considered personal property rather than part of the construction materials.
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