What Happens to Your Builders Risk Coverage When a Project Runs Long? 

Construction projects may not always finish on time. If your builders risk insurance policy has already reached its expiration date, you may be sitting on an uninsured jobsite without even realizing it.

How Project Delays Are Covered

Builders risk policies are written for a fixed term tied to your projected completion date. Once that date passes, coverage may stop even if the structure is only partially complete. This can leave you financially vulnerable to unexpected risks if the project is already delayed.

Options for Extending Coverage

When a delay is inevitable, you have a few paths forward:

• Request a policy extension from your insurer before the current term expires. However, policies may allow only one extension, and not all insurers may offer this option.
• Endorse the existing policy to reflect the new schedule, which may adjust your premium based on factors such as the timing of your request, the perils covered and risks at the time of the extension.
• Purchase a new policy if the original term has already lapsed, though it may involve gaps in coverage depending on your policy specifics.

Best Practices for Managing Builders Risk During Delays

Track your project schedule against your policy expiration date. Notify your agent as soon as a significant delay appears likely, before it even occurs. Keep documentation of the cause of the delay, as some policies may include provisions for covered causes.

Review your policy language carefully and ask your agent to walk through what a delay scenario would mean for your policy.

Contact Cormack-Routhier Agency, Inc. to request a coverage reassessment or a 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.