Builder’s Risk Coverage Problems


        Builder’s Risk Coverage: Understanding the Policy Period

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     • There is no coverage under the policy if the building is occupied to any
     extent
, for over 60 days, without written consent of the insurance company.

     • The policy only provides coverage for up to 90 days after the completion
     of construction
. In the case where the building is completed only two days before
     policy expiration, there are only two days of coverage available. There are
     90 days of coverage available after completion only if there are at least 90 days
     remaining in the policy period.

     • Coverage issues can arise at the end of a project, after construction is
     complete and the structure is occupied, but a “punch list” and final completion
     work remains.

Construction projects, regardless of their size, can present complex insurance issues. Are you confused about your exposures and policy options? If so, it’s no surprise—there are no standard builder’s risk policy forms covering these types of risks. To help you limit your exposure, here are some helpful builder’s risk policy basics.

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