The statute of repose sets an absolute deadline for filing construction defect claims, measured from the date the project is substantially completed. Unlike the statute of limitations (which starts when the defect is discovered), the statute of repose begins running when you finish the work, regardless of whether anyone has found a problem. For roofing contractors, this statute determines how long your completed operations coverage needs to remain active to protect you against latent defect claims.
How Long Are You Exposed?
The statute of repose varies significantly by state. Here are key examples that affect roofing contractors:
- Texas: 10 years from substantial completion for construction defects (Chapter 16, Texas Civil Practice and Remedies Code)
- Florida: 10 years, extended to 15 years if the defect is latent (Florida Statutes 95.11)
- California: 10 years for latent defects, 4 years for patent defects (California Code of Civil Procedure 337.15)
- Georgia: 8 years from substantial completion
- Colorado: 6 years, plus a 2-year discovery period
- New York: No statute of repose for construction defects; the 6-year statute of limitations applies from discovery
For a roofing contractor who installs a TPO membrane system in Texas in 2024, a property owner can file a construction defect claim as late as 2034 — a full decade after you finished the job. If your completed operations coverage is not in force when that claim is filed, you are defending and paying out of pocket.
Statute of Repose vs. Statute of Limitations
These two concepts are commonly confused but operate very differently. The statute of limitations typically gives a claimant two to four years to file suit after discovering the defect. The statute of repose provides an outer boundary regardless of discovery. A roof leak that goes undetected for seven years and is discovered in year eight falls within the statute of repose in Texas (10 years) but might be outside the statute of limitations if the claimant waits another three years to sue. Both clocks must be satisfied — the claim must be filed within the statute of limitations AND before the statute of repose expires.
Implications for Your Insurance Program
Your completed operations coverage must remain active throughout the statute of repose period for every state where you have performed work. If you installed roofs in Florida (15-year exposure for latent defects), you need 15 years of uninterrupted completed operations coverage for those projects. This has direct implications for carrier changes, policy lapses, and business transitions.
Most occurrence-based GL policies provide completed operations coverage for work completed during the policy period, with no time limitation on when the claim is filed. However, this only works if you maintained continuous coverage. If you let your policy lapse for even one month and then renew, the new policy covers only work completed during the new policy period — not work from the prior period.
Contractual Exposure Extensions
Some construction contracts contain indemnification clauses that effectively extend your exposure beyond the statutory period. A broadly worded indemnity clause might survive the statute of repose if a court determines the indemnification obligation is contractual rather than tort-based. Review indemnification language carefully, particularly on commercial projects where the GC's contract requires you to indemnify them for "any and all claims" without a time limitation.
Protective Measures
Maintain completed operations coverage continuously, even during slow periods or semi-retirement. Document every project with photographs, material specifications, and manufacturer warranty registrations — this evidence is invaluable when defending claims filed years later. Keep project records for at least as long as the longest statute of repose in states where you have worked. If you operate in multiple states, your record retention period should match the longest applicable statute.
Consult with your broker about the statute of repose in every state where you perform roofing work, and ensure your completed operations limits and duration are adequate to cover that exposure window. A $50,000 interior water damage claim from a nine-year-old roof installation is manageable with insurance — and devastating without it.