Florida Insurance Claims Adjuster License Practice Exam

The Builders Risk Coverage Form assumes which coinsurance provision:

1. 90%

2. 100%

3. 80%

4. 70%

The correct answer is: 100%

The Builders Risk Coverage Form typically includes a 100% coinsurance provision, which means that the policyholder must insure the property for at least 100% of its estimated replacement cost in order to receive full coverage for any losses. Option A (90%) would result in a penalty for underinsurance, while options C (80%) and D (70%) would provide even less coverage, leaving the policyholder vulnerable to financial loss in the event of a claim. Therefore, the 100% coinsurance provision is the most beneficial and commonly used provision in the Builders Risk Coverage Form.