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Builders Risk Insurance

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When does builders risk insurance finish?

Builders Risk Insurance

Builders risk insurance typically ends when construction projects reach specific milestones like partial completion, full completion, or other criteria outlined in the insurance policy. For most policies in New Zealand, these milestones include issuance of practical completion certificates, occupation of the building, or other predefined triggers.

What Determines the End Date of Builders Risk Insurance?

There are specific criteria in a policy that indicate when coverage will cease. It is typically whichever of the below happens first. 

Partial Completion

When a partial practical completion certificate gets issued or if a part of the work is occupied or used by the purchaser or other authorized entities.


This is marked by either the issuance of a practical completion certificate or the moment the entire work is occupied, taken over, or put into use.

Speculative Project

For projects with no purchase agreement, the policy concludes when 95% of the project price has been expended, and the works are open for public viewing.

Scheduled Date

A predetermined date might be mentioned in the policy, post which the insurance ends. However, with mutual agreement, this date can be extended.

Why is the End Date Important?

  • It determines the period during which your project is covered against specific risks.
  • Helps in budgeting and financial planning for the construction project.
  • Acts as a trigger for transitioning to other insurance forms.

Why Does Builders Risk Insurance Have an End Date?

  • Risk Period: Builders risk insurance covers specific risks during the construction phase. Once construction is complete, those risks decrease or change.
  • Transition to Permanent Coverage: Post-construction, a more permanent form of insurance, like property insurance, becomes appropriate.
  • Cost and Efficiency: It’s not economical to cover a finished building under a builder’s risk policy when other types of coverage are better suited.

Disadvantages/Advantages of Builders Risk Insurance End Date?

  • Ensures that you’re not overpaying for risks that no longer exist post-construction.
  • Signals a transition to other more relevant insurance policies.
  • Encourages timely completion of construction projects.
  • If construction gets delayed, extending the policy might incur extra costs.
  • There’s a risk of gaps in coverage if the next insurance doesn’t start immediately after the builder’s risk insurance ends.

Common Misunderstandings About the End Date

  • Misunderstanding 1: Once the construction seems visually complete, the insurance ends. Reality: The issuance of certificates or the project’s occupation are often determining factors.
  • Misunderstanding 2: All builders risk insurance policies have the same end date criteria. Reality: Clauses can vary widely based on the policy.

How Can Gerrards Help?

  • We offer expert guidance to help you understand your policy’s terms and end dates.
  • As specialists in business insurance, we can help transition you to the next appropriate policy after your builder’s risk insurance concludes.
  • Our dedicated team is always on hand to address any concerns or answer any questions related to your insurance needs.

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