Policy Period: Coverage Expiration

        Builder’s Risk Coverage: Understanding the Policy Period


Coverage Expiration: Determining when coverage terminates can be equally problematic. Builder’s Risk policies can contain provisions that terminate coverage prior to policy expiration. The provisions typically state that coverage will end at the earliest of the following:

     • The policy expires or is cancelled

     • The property is accepted by the purchaser

     • Your interest in the property ceases

     • You abandon the construction with no intention of completing it

     • Unless specified otherwise in writing:

          ◦ 90 days after construction is complete

          ◦ 60 days after construction is complete and building described in the declaration is:

               • Occupied in whole or in part

               • Put to its intended use

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.