Builders risk can end before the expiry date. On most wordings expiry is only one of several triggers, and not always the first.
It is natural to read the expiry date as the finish line. The policy ends at the first of several triggers, and the date on the schedule may not be the first one. Moving in, handing over, or letting a tenant start early can end cover on a project that is still being worked on.
Build the project file The short answerCover runs until the date printed on the policy
Cover runs until the earliest of several events, whichever happens first
Occupancy. On some wordings even one unit or one floor
When does builders risk coverage actually end?
At the first of several triggers, not at the expiry date. The usual list is: the property is occupied or put to its intended use, the owner accepts it, your insurable interest ends, work stops or the site is left unattended for longer than the policy allows, the project is abandoned, permanent insurance takes over, or the policy expires. Whichever arrives first closes the policy, and occupancy can be the earliest.
The exact triggers and any grace periods are written into the specific wording, and they differ between insurers and between forms. That is why the honest answer to “when does mine end?” is that somebody has to read your policy, not quote a general rule. What the standard construction contract sets out is the shape: earliest of, not last of.
A fire in a building that is finished but not handed over, on a policy that quietly ended six weeks ago when the first tenant moved in, can be an uninsured total loss on a completed structure. The Canadian Construction Documents Committee is direct about the handover: “An owner should not unreasonably delay accepting responsibility for insuring a project.” The gap between the builders risk ending and the permanent policy starting is where a loss falls on nobody. Read CCDC Bulletin 27 on when the policy lapses (opens in a new tab).
Where the hole opens up.
Builders risk has ended
Because someone moved in, or the owner signed acceptance, or your insurable interest in the property ended.
Permanent insurance has not started
Because nobody arranged it yet, or it was arranged from the handover date and the handover slipped, or the owner assumed the builder still had it.
Three ordinary decisions that end the policy.
A tenant moves into the finished floor
The building is not done. One floor is. The lease starts because holding it empty costs money. On some wordings that is occupancy, and it can affect the whole project rather than just that floor. Some wordings allow office or habitational use, so the wording, and your contract, have to be read before the lease starts.
The owner signs acceptance
Deficiencies are still being worked through and trades are still on site, but the paperwork says accepted. Acceptance is a trigger on some forms, and the trades still working are now working on a building nobody has insured for construction.
The schedule slips past the term
An extension asked for in week one is routine. Asked for after the term has run out, it is a new submission on a project the insurer can now see is late, and the insurer can price for that.
What owners and builders ask us about this.
We are moving into one unit early. Does that really matter?
It can end cover, and on some wordings not just for that unit. Tell your broker before the move rather than after. Arranged in advance it is usually a straightforward endorsement. Discovered at claim time, it becomes a coverage dispute, and the wording and the facts decide it.
The project is running late. When should I ask for an extension?
The moment you know, and while the policy is still live. Extensions on a policy that is still in force are ordinary. Cover asked for after it lapsed is a fresh underwriting decision, and the insurer prices what it can now see.
Who arranges the permanent policy, and when does it start?
This is where gaps open. It is easy for owner and builder to each assume the other has it, and to assume it starts on the day in the contract rather than the day things actually happened. Agree it in writing, with a date, before handover week.
Does builders risk cover the existing building during a renovation?
Only if it was written to. The existing structure and the new work can sit on one policy or two, and getting that wrong leaves a gap exactly where a renovation can cause damage.
The lender wants specific wording. Does that change the end date?
It can. Lender requirements can name the term and what happens at completion. Send us the clause and we will tell you what it asks for.
Two that sit alongside this on the same project: the conditions the site has to meet and what a wrap-up policy leaves with your own company.
Not the question you had? Build the project file and set out your own situation in plain words. A licensed broker reads it and replies in writing.
Send us the policy and the schedule.
We will read the termination wording, tell you which triggers it contains and what each would mean for your dates, and say what has to be arranged before the first one.