By the time May rolls around, most construction projects are in full swing. Crews are on site, materials are moving, and timelines are being tested. This is also the point where Builder’s Risk policies are most likely to fall out of sync with the reality of the job.
Many policies are set at the start of a project and left untouched. As delays, change orders, and material cost increases come into play, gaps can develop that only become obvious when a loss occurs.
Coverage Gaps When Projects Are Delayed or Extended
Builder’s Risk policies are typically written based on an expected project timeline. When a job runs longer than anticipated, coverage may not automatically extend.
Common issues include:
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Policies expiring before the project is complete
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Failure to notify the carrier of timeline changes
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Increased exposure due to partially completed structures sitting longer than expected
If a loss occurs after a policy expires or outside the original terms, coverage may be limited or denied.
Theft, Vandalism, and Materials Stored on Site
Active jobsites attract attention, especially when valuable materials are stored on site. As projects progress, the value of materials and installed work increases.
Key exposures include:
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Theft of tools, fixtures, or building materials
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Vandalism to partially completed structures
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Losses tied to unsecured or lightly secured storage areas
Coverage depends on how materials are stored, how the site is secured, and the specific terms of the policy.
Soft Costs and Why They Are Often Excluded
Many contractors and project owners assume that all project-related expenses are covered under a Builder’s Risk policy. In reality, soft costs are often excluded unless specifically added.
Examples of soft costs include:
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Interest on construction loans
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Architectural and engineering fees
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Permit costs and legal expenses
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Additional marketing or leasing costs due to delays
Without a soft cost endorsement, these expenses can become a significant out of pocket burden if a covered loss delays the project.
The Importance of Updating Project Timelines with Carriers
As projects evolve, communication with your insurance carrier becomes critical. Changes in scope, timeline, or value should be reported and reflected in the policy.
Best practices include:
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Reviewing Builder’s Risk coverage at key project milestones
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Updating project completion dates as delays occur
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Adjusting limits to reflect increased material and labor costs
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Confirming coverage remains active through completion
A policy that matched the project on day one may not reflect the same level of risk halfway through.
Celtic Shield Can Help
At Celtic Shield Insurance Group, we work with contractors across Pennsylvania to make sure Builder’s Risk coverage stays aligned with the realities of the job. Mid-project is the most important time to identify gaps and make adjustments before they turn into uncovered losses.
📞 If your projects are underway this season, now is the time to review your Builder’s Risk coverage and make sure it is keeping pace.
