How Long Does Builders Risk Insurance Last? Policy Duration Explained

Nate Jones, CPCU, ARM, CLCS, AU
2 days ago
2 min read

One of the most overlooked details of builders risk insurance is how long the policy actually lasts. Coverage duration is critical—if your policy expires too early, your construction project could be left unprotected during one of its riskiest phases.

Here’s what property owners and contractors need to know about builders risk insurance policy duration.

When Builders Risk Insurance Coverage Begins

Builders risk insurance typically begins when:

Construction or renovation work starts
Materials are delivered to the job site
The policy’s effective date is triggered

Coverage can often be written to start before ground is broken, protecting materials stored onsite or in transit.

Standard Builders Risk Insurance Policy Length

Most builders risk insurance policies are written for a fixed term, commonly:

3 months
6 months
9 months
12 months

The policy length should match the expected construction timeline. Short-term renovation projects may need only a few months, while new construction often requires a full year or more.

What Causes Builders Risk Insurance to End?

Builders risk insurance does not always last until the policy expiration date. Coverage may end when:

The project is completed
The building is occupied or put to its intended use
The property is sold
Construction is abandoned
A certificate of occupancy is issued

Many policies automatically terminate coverage once the building becomes occupied—even temporarily.

What Happens If Construction Is Delayed?

Construction delays are common due to weather, labor shortages, or supply chain issues. If a project runs longer than expected:

Builders risk insurance may expire before completion
An extension or policy endorsement may be required
A new policy may need to be issued

According to the National Association of Home Builders, construction delays have increased in recent years, making policy extensions more important than ever.

Failing to extend coverage can leave a partially completed structure uninsured.

Transitioning After Builders Risk Insurance Ends

Once construction is complete, builders risk insurance should be replaced with permanent coverage, such as:

Commercial property insurance
Landlord or rental property insurance
Homeowners insurance (for owner-occupied properties)

The National Association of Insurance Commissioners recommends coordinating this transition carefully to avoid coverage gaps.

How Wexford Insurance Helps Protect Your Project

At Wexford Insurance, we specialize in builders risk insurance for residential and commercial construction projects. we help property owners and contractors: