What is the coverage limit for property in transit under builders risk coverage?

Under builders risk coverage, the typical coverage limit for property in transit is set at $25,000. This provision is designed to protect various materials and equipment that may be in transit to or from a construction site. Having a designated limit such as this helps ensure that there is adequate coverage for loss or damage incurred while the property is in transit, which can often be a vulnerable phase in the construction process due to the potential for theft, damage, or loss.

The builders risk insurance policy generally covers structures and materials on-site, but it also extends to property in transit to safeguard the interests of contractors and builders during the entire project, not just when materials are on-site. This limit is reflective of the common practices in insurance policies, which aim to strike a balance between providing useful coverage while also maintaining profitability for the insurer.

Other amounts listed in the choices are either lower than what is customary for this type of coverage or do not align with the standard limits laid out by insurance guidelines. Thus, $25,000 stands as a frequently accepted and established standard limit for property in transit under builders risk coverage.