Builders Risk Answer

What Is the Term of a Builders Risk Policy?

Builders risk policies don’t renew like annual insurance. They’re project-specific, time-limited contracts. Choosing the right term — and extending it when needed — is critical to maintaining continuous coverage.

• ✓Standard terms: 6, 9, or 12 months
• ✓Coverage ends at completion, occupancy, or policy expiration — whichever is first
• ✓No auto-renewal — extensions require active requests
• ✓We track every client policy expiration and alert you 45 days early

The Direct Answer

Builders risk policies are written for a fixed term — most commonly 6, 9, or 12 months. The policy terminates at the earliest of: the expiration date, substantial completion of the project, first occupancy, or when the completed work is accepted by the owner.

For residential new construction, a 12-month term is the standard choice. It provides enough runway for a typical single-family build plus a realistic buffer for the delays every project encounters. A 9-month term is used when the project timeline is reliably shorter, and some smaller renovation projects use 6-month terms.

The key: your term should match your realistic completion timeline plus a buffer — not your optimistic timeline. Adding an extra 2–3 months to your projected completion when choosing a term costs modest additional premium compared to the hassle and risk of scrambling for an extension when the project runs long.

What Happens When the Term Ends

When a builders risk policy expires, coverage ends — period. An unoccupied partially-built project with no active builders risk policy is an uninsured construction project. This creates two immediate problems: any loss during the gap is your out-of-pocket expense, and your construction lender will halt draws and may call the loan when they discover coverage has lapsed.

Policies do not auto-renew. Every extension requires an active request to the carrier with an updated completion date and additional premium. We monitor all client policy terms and reach out at 45–60 days before expiration to make sure this process starts on time.

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