General information only — not legal, tax, financial, or real-estate advice. Verify with a licensed BC professional before acting.
Builder's Risk insurance — also called Course of Construction insurance — is a property insurance policy that covers a building while it is under construction or undergoing major renovation. It typically protects against losses such as fire, theft, vandalism, and weather-related damage to the structure and on-site materials. Mortgage lenders commonly require this coverage as a condition of financing during a new build or significant renovation; verify current lender requirements with a licensed mortgage professional. The policy ordinarily remains in force until substantial completion of the project, at which point a standard home insurance policy is expected to replace it. Coordinating the transition date between the two policies carefully is essential to avoid unintended gaps in coverage. For guidance specific to your project, verify current details with a BC lawyer, notary, or licensed insurance professional.
Builder's Risk Insurance (also called Course of Construction insurance) is a specialized property insurance policy that covers a building during construction or major renovation against perils such as fire, theft, vandalism, and weather damage. It is typically required by lenders financing new builds or substantial renovations in BC. The policy terminates at substantial completion, when standard homeowner insurance takes over; careful coordination of the handover date is essential to avoid coverage gaps. Verify current policy terms and requirements with a licensed insurance broker in BC.
BC does not have a statute that directly mandates Builder's Risk Insurance for all construction projects. However, mortgage lenders in BC routinely require it as a condition of construction financing to protect their security interest in the property under the *Land Title Act*, RSBC 1996, c. 250. Verify with your lender and a BC lawyer or notary whether your specific project requires this coverage before commencing construction.
The property owner or the general contractor typically purchases Builder's Risk Insurance, depending on the construction contract. The policy should name all parties with an insurable interest—owner, lender, and general contractor—as insured or additional insureds. Review your construction contract and confirm coverage requirements with a BC lawyer and a licensed insurance broker before work begins.
Builder's Risk policies generally cover risks such as fire, lightning, wind, hail, theft of materials, vandalism, and certain weather-related damage during construction. Coverage details, exclusions (such as design defects, faulty workmanship, or flood), and limits vary widely by insurer and policy wording. Verify the specific perils covered, exclusions, and policy limits with a licensed insurance broker in BC before purchasing.
Builder's Risk Insurance typically ends at "substantial completion," when the building is ready for occupancy or use, even if minor finishing work remains. At that point, standard homeowner or commercial property insurance must be in place to avoid a coverage gap. Coordinate the transition date carefully with your insurance broker, lender, and BC lawyer or notary to ensure continuous coverage.
No. Builder's Risk Insurance is property insurance covering damage to the building and materials; it does not cover third-party bodily injury or general liability. Contractors and owners should obtain separate Commercial General Liability (CGL) insurance to cover injuries or property damage to third parties during construction. Verify coverage requirements under BC's *Workers Compensation Act* and with a licensed insurance broker.
Most Builder's Risk policies allow early termination when construction is substantially complete and standard property insurance is in force, but cancellation terms vary by insurer. Some policies may offer a short-rate refund of premium; others may charge a penalty or retain earned premium. Review your policy wording and confirm cancellation procedures and refund eligibility with your licensed insurance broker in BC before cancelling.
Coverage for materials stored off-site (for example, at a supplier's yard or warehouse) depends on the specific policy wording. Some Builder's Risk policies extend limited coverage to materials intended for the project while in transit or temporary storage; others exclude off-site materials entirely. Verify off-site coverage, sub-limits, and conditions with a licensed insurance broker in BC and consider additional inland marine or transit insurance if necessary.
Builder's Risk Insurance is a private contract between the insured and the insurer; it is not directly mandated by the BC Building Code or municipal building bylaws enacted under the *Local Government Act*, RSBC 2015, c. 1. However, insurers may require that construction comply with applicable codes and that valid permits be in place as a condition of coverage. Verify permit and code-compliance requirements with your municipality and a licensed insurance broker before construction begins.
A coverage gap exposes the owner and lender to uninsured loss from fire, theft, or other perils during the transition period. BC has no statute requiring continuous insurance, but mortgage lenders typically require proof of uninterrupted coverage under the *Land Title Act*, RSBC 1996, c. 250, mortgage covenants. Coordinate the effective dates of Builder's Risk and standard homeowner policies carefully with your insurance broker, lender, and BC lawyer or notary to avoid any lapse in coverage.
Verify the specific statutory language, thresholds, deadlines and current guidance directly with the governing authority: