Canadian Accredited Insurance Broker (CAIB) Two Practice Exam 2026 – Comprehensive All-In-One Guide for Exam Success!

Coverage under a Builders Risk Policy typically ceases when the building comes into use. This is because Builders Risk Insurance is specifically designed to cover buildings while they are under construction or renovation, addressing the risks associated during this transitional phase. Once the building is completed and ready for occupancy, the nature of the risk changes significantly. At this point, other forms of insurance, such as a Property Policy, are more appropriate to continue protecting the asset.

The timing of when a building becomes occupied marks a critical transition in insurance coverage requirements. While the construction phase may include various inspections and could also relate to the completion of the project, it is ultimately the readiness and use of the structure that signifies the end of Builders Risk coverage.

Thus, the cessation being tied to the building's use accurately reflects the purpose and limitations inherent within this type of policy.