Owner is required to carry builder's risk insurance because ...?

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    Haytham Abdelrahman Abdelall

    Ultimately the owner will operate the building and he should have all risk insurance against the portion the GC transfer the rights to him after every certificate payment.

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    Sara Mirza

    Hi Yuan

    I guess by referring the answer to A201, it tells us that neither in B101(Owner/ Architect) nor in A101(owner/Contractor) agreement noting has been said about this owner insurance obligation so the A & B can not be the answer. D is telling that because the owner is the one who owns the project and all the title at the end of the day, after all his payments, will be in his name. The insurance for possible future needs should be in his name too. Because if it was the contractor's insurance he may not have anything to do with the construction by the time insurance is needed. 

    Hope I am right otherwise someone corrects me. Thank you!

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    Yuan Ma

    Hi Sara,

    Thank you for the answer! I think your explanation about D does make sense. I searched the AIA documents carefully. A201 does say that the owner should carry liability insurance, but does not specify "all-risk insurance". But A101 Exhibit A does specify that the owner should carry all risk insurance.

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    Dzhulia Dimitrova-Blazheva

    Yuan

    Where do you have these questions from.

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    Yuan Ma

    Hi Dzhulia,

    These questions are from PPI2PASS. I find them very helpful.

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