What does builders risk insurance typically cover?

Builders risk insurance is designed specifically to protect construction projects during the building phase. It typically covers unexpected losses that occur due to factors outside the control of the builders, such as weather-related damage and theft of materials or equipment at the construction site. This coverage is essential because construction sites are often vulnerable to various risks, including severe weather, vandalism, and theft, which can lead to significant financial losses if not properly insured.

Given this focus, option B accurately identifies the primary functions of builders risk insurance, emphasizing its role in safeguarding investments during the construction phase against unforeseen events that could impede progress and increase costs. Other options, while relevant to construction in various contexts, do not encapsulate the specific protection that builders risk insurance offers during the active building period.