When Builders Risk Coverage Should Start and End

Construction activity can bring financial risk as soon as materials arrive on site. Without builders risk insurance, unexpected losses may fall on the owner or contractor. Smaistrla Insurance Agency offers coverage options that fit project needs in Texas.

When Should Builders Risk Coverage Begin?

The ideal time to start builder’s risk insurance is before any physical work begins, including site preparation, demolition or material delivery. Early coverage can help cover your project from the start against risks like fire, theft, vandalism and certain weather events.

Key considerations for starting coverage typically include the following:

• Permits and contracts: Lenders and contracts may require proof of builders risk insurance before work starts.
• Material delivery: Coverage should be in place before materials arrive, as losses can occur even before construction begins.
• Project scope: New builds and major renovations can benefit from early coverage to reduce the chance of gaps.

When Should Builders Risk Coverage End?

Builders risk insurance covers the project during construction, but it’s important to know when to end the policy. Coverage should generally end when the project is complete and ready for occupancy or use.

Possible triggers for ending coverage may include:

• Certificate of occupancy issued: The building is approved for use by local authorities.
• Project completion: All work is finished, and the property is ready for its intended purpose.
• Transfer of ownership: If the property is sold or transferred, coverage may need to be discontinued or transferred to a different policy.

Get Started Today

Smaistrla Insurance Agency can review your needs to help you find the right coverage. Contact us for a free custom quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.