Two different policies, and a gap between them
Standard homeowners insurance typically excludes properties under active construction entirely. That’s what builder’s risk insurance is for: it covers the structure, materials, and equipment on site from the first day of work until the project is finished. The two policies aren’t meant to overlap, they’re meant to hand off cleanly at completion. In practice, that handoff is where problems happen.
Where the gap actually opens up
Builder’s risk coverage doesn’t continue indefinitely after a home is finished, and a standard homeowners policy isn’t automatically active the moment construction wraps. If the builder’s risk policy is canceled before the homeowners policy is confirmed active, or if underwriting on the new policy takes longer than expected, the home can sit uninsured during exactly the period when it’s most exposed: fully built, not yet occupied, contents and finishes in place.
This matters more for a custom Ohio build than a production home, since custom projects tend to run longer timelines with more phases where the “who’s covering this right now” question gets less clear.
Talk to a specialist
Have a question about how this applies to your specific property? A quick conversation is faster than reading the rest of this guide.
What we confirm before the builder’s risk policy lapses
- Written confirmation that the new homeowners policy is active, not just applied for, before builder’s risk coverage ends
- That the dwelling limit on the new policy reflects the home’s actual finished cost, not the estimate used when the project broke ground
- That any custom features finished late in the build, the kind that often get priced separately, are actually reflected in the final coverage
The riskiest moment for a new custom home isn’t during construction. It’s the week after, when everyone assumes someone else has it covered.
Getting this handled correctly
We coordinate directly with builders and lenders on this handoff as part of placing coverage on a new custom home, so there’s no gap between the last day of builder’s risk and the first day your actual policy is confirmed active.