Florida Contractor Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

The correct choice highlights that with Builder's Risk insurance, it is possible to extend coverage to include materials that are either in transit or located at a temporary storage facility. Builder's Risk insurance is specifically designed to protect construction projects, providing coverage for buildings under construction as well as materials and equipment associated with the project.

Including materials in transit is crucial, as construction projects often require materials to be transported to the job site. By covering these materials, the insurance mitigates risks related to theft, loss, or damage during transportation, preserving both financial investment and project timelines. Additionally, materials stored temporarily before being used on-site are also vulnerable to risks; therefore, this extended coverage offers essential protection against potential issues that could disrupt the construction workflow.

The other choices relate to groups or individuals associated with a construction project, such as subcontractors or their employees, which are not typically included under Builder's Risk insurance. Instead, these parties would generally be covered under different types of liability insurance or workers' compensation insurance if needed.