Why Builders Should Keep Their Books and Records for 10 Years

Builders don’t lose sleep over what’s in their insurance policies.

They lose sleep when they find out—too late—what’s not covered.

At the International Builders Show, an attorney shared a case that sent shockwaves through the room.

A major insurance carrier had issued a policy with five clear conditions.

One of them? “Keep all books and records for 10 years.”

Not a suggestion. Not a best practice. It was a policy warranty—a binding condition of coverage.

If the builder failed to follow this step?

No claim would be honored.

No coverage. No backup. No protection.

Think about that. You’ve done everything right. Built the home. Managed your subs. Paid your premiums. And when something goes wrong… your claim gets denied over a paperwork technicality.

This isn’t a one-off case. Insurance policies today are filled with exclusions, caveats, and warranties written in language few people understand.

Because when a claim hits, there are three possible outcomes:

1. You’re covered.
2. You’re denied.
3. You’re caught in a lawsuit with no help.

Two out of three are bad odds. That’s why builders can’t afford to treat insurance like a commodity. It’s not just a premium. It’s a lifeline.