Who Needs a Builders Risk Policy and How Long Do They Last? 

A builders risk policy is a temporary property insurance policy for structures under construction or major renovation. Many construction professionals add builders risk coverage to their broader business insurance to align project exposure with ongoing operations.

Who Needs a Builders Risk Policy?

Builders risk is most relevant for parties with financial exposure to the structure and materials during construction, such as:

• Property owners funding new builds or major renovations who want coverage for the structure and materials as the project advances
• General contractors responsible for the job site and project coordination, often required by contract to carry this coverage
• Developers and investors managing multiple sites and timelines where a loss can disrupt financing and schedules
• Homebuilders and custom builders working on new homes, additions or large remodels
• Lenders that require builders risk as a condition of construction financing

How Long Do Builders Risk Policies Last?

Most builders risk policies run for three, six or twelve months, with the option to extend if the project goes past the original completion date.

Coverage usually begins when construction activity starts. This can be the first day materials arrive on site or the official start date listed in the construction contract. It does not typically activate during planning or design phases.

Coverage often ends once the project is considered complete. Many carriers use specific triggers such as the building being ready for occupancy, the issuance of a certificate of completion or the point at which major construction is finished, and only minor work remains. These timelines help align the policy with actual construction progress and reduce the chance of coverage lapses.

Learn More

If you’re planning a build in Charlotte, NC or nearby areas, The Austin Agency can help you secure builders risk insurance. Contact us today to request a 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.