Project Delays Happen — But They Can Leave You Uninsured
Whether you’re building a new home, adding an extension, or completing a full remodel, project delays are common. Supply chain slowdowns, weather issues, or contractor scheduling conflicts can push your completion date weeks — or even months — past the original plan.
Unfortunately, your Course of Construction (COC) or Builder’s Renovation policy doesn’t automatically extend just because the work isn’t done. If your policy expires before completion, you could be left completely uninsured.
Why Delays Matter for Insurance
Construction and renovation policies are written for a specific time period — usually 3, 6, or 12 months. The term is based on the expected completion date you gave your broker.
If your project goes past this date without an extension:
- All coverage stops at midnight on the expiry date.
- Theft, fire, vandalism, or storm damage may not be covered.
- Lenders may suspend funding until proof of insurance is restored.
Common Causes of Renovation Project Delays
Delays can happen for reasons beyond your control, such as:
- Weather: Heavy rain, early snowfall, windstorms.
- Supply chain: Back-ordered materials, delayed shipments.
- Trades availability: Waiting for electricians, plumbers, inspectors.
- Permit or inspection delays: Paperwork bottlenecks or re-inspections.
- Unexpected site issues: Asbestos discovery, foundation cracks, soil problems.
The key is to plan for the unexpected — including insurance extensions.
What Happens If Coverage Lapses
If your policy expires before completion:
- Your home or project may have no active insurance.
- Damage to unfinished work or stored materials may be uninsured.
- You may have to reapply for coverage, which can be more expensive.
- Lenders may stop releasing construction draws until coverage is reinstated.
How to Extend Your Coverage
Most insurers allow extensions if:
- The project is ongoing and active.
- No unreported loss has occurred.
- You pay the additional premium for the new term.
Extension Process:
- Contact your broker before the expiry date.
- Provide an updated completion timeline and % complete.
- Explain the reason for the delay (weather, materials, trades).
- Confirm the new term and premium in writing.
Grace Periods — Don’t Rely on Them
Some policies offer a very short grace period (just a few days) for renewal, but:
- This is not standard.
- Most insurers stop coverage the day the policy expires.
- You should assume day one after expiry = no coverage unless confirmed in writing.
Real-World Canadian Scenarios
Scenario 1 – Proper Extension (Covered Claim)
A BC homeowner’s kitchen and main-floor renovation was delayed by 2 months waiting for custom cabinets. Their broker extended their Builder’s Renovation policy before expiry. A plumbing leak caused $12,000 in damage — fully covered.
Scenario 2 – Lapsed Coverage (Denied Claim)
In Alberta, a detached garage build ran past schedule. The COC policy expired while awaiting siding delivery. A windstorm caused $18,000 in damage — the claim was denied because the policy had lapsed.
How to Avoid Coverage Gaps
- Track your insurance expiry date like a building permit deadline.
- Build buffer time into your initial policy term.
- Notify your broker 2–4 weeks before expiry if delays are likely.
- Consider soft cost coverage if delays will increase financing or permit costs.
The Bottom Line
Project delays are a fact of life in construction — but they don’t have to leave you uninsured.
By planning ahead and arranging an extension before your policy expires, you can keep your project protected until the final inspection is complete.
🔨 Renovation running late? Protect your project before coverage runs out.
Request a construction insurance extension or quote today
