Which statement regarding builders risk coverage form is correct?

The builder's risk coverage form is designed specifically to provide protection during the construction phase of a building. One of its key features is its flexibility in handling insurance amounts.

The correct statement indicates that the builder's risk coverage can be written on a reporting form that accounts for the completed value of the structure. This means that as construction progresses, the coverage can adjust to reflect the increasing value of the structure until it's fully completed. This is particularly advantageous because it helps ensure that the coverage matches the total value of the project, which may change frequently as work continues.

In contrast, the other statements are less accurate regarding this type of insurance. For instance, the builder's risk policy does not limit coverage exclusively to the builder; it can also extend to the property owner and financial interests involved. Additionally, while builder's risk can cover fire and extended perils, it is not restricted to just these. Lastly, builder's risk coverage typically ends upon completion of the construction or when the building is occupied by the owner, rather than continuing for an additional year after completion.