Good afternoon all,
In the AIA A201 article 10 10.2.5 the contractor is to remedy damage and loss (other than damage or less insured under property insurance). what is covered under property insurance with respect to an AIA contract? sounds very open ended. would mold that began growing on a wall that is part of “the work” be the contractor’s responsibility or property insurance?
Thanks
Hi @wildlandguy, thank you for your question.
Property insurance required for a project under the AIA contracts is typically in the form of a “builder’s risk” policy, which insures against damage and loss to the project before it is complete. It protects against perils such as fire, theft, vandalism, or natural disasters.
A101-2017 Exhibit A, Insurance and Bonds outlines the required insurance and bonds when used in conjunction with the A201. Also, check out this article for an overview of insurance and bond types for each party of a construction project.
Property insurance that the owner obtains after a project is complete is outside of the AIA contracts’ realm (i.e. homeowner’s insurance, renter’s insurance, etc.). Mold is typically not covered by property insurance, unless it is caused by a sudden or accidental event (i.e. burst pipe, toilet overflow).
Hope this helps. Happy studying!
Kiara Galicinao, AIA, NCARB
Black Spectacles