When does coverage from a builder's risk coverage form terminate?

Builder's risk coverage is designed to provide protection for buildings under construction, but its coverage is typically tied to certain milestones. The correct point of termination for this type of coverage occurs when the property is accepted by the purchaser. This acceptance signifies that the builder’s obligations are fulfilled and that ownership has transferred, which fundamentally changes the risk and responsibility for the property.

In practical terms, once the buyer accepts the property, they assume responsibility for it, which is when the builder's risk policy is no longer needed. The other choices, such as completion of construction or vacating the property, do not, in themselves, necessarily indicate that the risk has transferred away from the builder. Likewise, an arbitrary end of the policy term would not correlate directly with the completion or acceptance of a construction project. As such, the acceptance by the purchaser is the crucial event that dictates the termination of the builder's risk coverage.