Common use of Property Insurance Coverage Clause in Contracts

Property Insurance Coverage. Owner shall take out and maintain during the life of this Agreement a Property Insurance Policy completed value form, issued to provide coverage on an “all risk” basis for the new work put in place by Contractor, including theft. The Owner shall be liable for and shall insure damage to existing structures. Owner shall be responsible for all deductibles. All parties with a financial interest in the Project shall be named as Insureds and a Blanket Waiver of Subrogation shall be granted in favor of all Insureds. Owner agrees to furnish to the Contractor a copy of the Property Insurance Policy. It is understood and agreed that owner is bearing all risk of loss to the property for which Owner has an insurable or financial interest during construction, and in the event of a loss during construction Owner agrees to look solely to the proceeds of the Property Insurance which Owner has agreed to furnish. Contractor should be paid by Owner for such work in place at the time of such loss regardless of whether or not such work was damaged in whole or in part by the peril. In the event of a loss requiring reconstruction of any part of the project, Contractor shall be entitled to be paid as provided in Article 5 for overseeing such reconstruction.