It can be tricky to know when builders risk insurance coverage ceases/ends. Builders risk policies include an array of provision which could cease/end coverage when one of the following first occurs:
- When the structure is occupied in whole or in part.
- When the structure is put to its intended use.
- The policy expires or is cancelled.
- The property is accepted by the owner or purchaser.
- Your interest in the property ceases.
- You abandon the construction with no intention to complete it.
- A specific number of days after construction is complete.
Once coverage ceases, it’s critical to replace the builders risk policy with a permanent placement policy such as personal homeowners insurance policy or commercial property insurance policy without a lapse in coverage. We recommend using a single insurance agent knowledgeable in builders risk insurance to help procure and manage both policies, preventing a lapse in coverage and resulting in an uncovered loss.
Builders risk insurance policy forms vary from insurance company to insurance company, which is why it’s important to read your policy and understand when coverage ceases.
The Author
Christian Kopp is the co-owner of Blueprint Risk, a risk management and insurance agency with locations in Tulsa, OK and Austin, TX. Blueprint Risk empowers their clients to take control of their future by identifying existing and potential risks and developing a plan of action using their BluePrint 365™ process. Contact Christian via email at ckopp@blueprint-risk.com.
