Builder's risk is a policy covering a property while it's under construction or renovation, including materials on site and usually the work already in place. It exists because an ordinary homeowners policy typically limits or excludes coverage on a vacant home and on active construction work. So the common setup on a flip is builder's risk during the renovation, swapped for something else once the house is furnished, occupied, or sold.
The vacancy language comes from the policy, not the lender. Many policies cut or void coverage once a home sits empty past a set number of days, often 30 or 60, and the endorsement is what buys that back. Wording differs between carriers, so the endorsement your broker offers may not do what the last one you saw did.
The certificate naming the lender and the full replacement cost requirement are the lender's, and the logic is simple: they're holding millions against a structure and want proof it can be rebuilt. Your general liability limit is a contract term the owner or lender sets, and being asked for more than a small contractor usually carries is normal at this value. An excess or umbrella layer sitting over your existing GL is often cheaper than replacing the underlying policy, though pricing turns on your trade and claims history, so ask your broker for both quotes.
Licensing is the part that catches service businesses moving upmarket. Some states require a different license class or a larger bond above certain contract values, so check your state board before signing anything this size. Coverage wording is a licensed broker's territory, and on a contract like this have them read the insurance exhibit before you sign.
