In terms of risk management, which type of insurance excludes coverage for wear and tear?

Builder's risk insurance is designed to cover buildings under construction, including the materials and equipment used in the project. One of its key features is that it specifically excludes coverage for wear and tear. This type of insurance is intended to protect against risks such as theft, vandalism, or damage caused by certain events (such as fire or wind) during the construction process, not the natural deterioration of materials or structures that occurs over time due to normal usage.

In contrast, general liability insurance, homeowner’s insurance, and property insurance are more focused on covering losses from accidents or damage to property rather than addressing issues related to the gradual decline in value or structural integrity caused by wear and tear. Therefore, builder's risk insurance stands out in its exclusion of coverage for this specifically defined risk, making it the correct answer in the context of risk management related to the condition of construction projects.