What should be the subject matter under “Building in the course of construction” under Fire Insurance
Generally the description of risk under Building in the course of construction is mentioned as “Building” which means the building already built as on the date of damage will be the subject matter of the insurance. While building is under construction, the stock of building material i.e Steel, Cement , Bajari, Reta are also lying on the site and if the same is damaged by any insured peril whether the said loss is covered under fire policy. The stock will not be covered unless and until the stock of building material is also mentioned in the policy as subject matter along with the building. Recently the claim was repudiated by the Insurer/Surveyor on the ground that the building description was “Ground, First and second floor of the building” and stock was not described in the policy. Such losses occurred in hilly areas.
So be careful while insuring “ Building in the course of construction”