I have a situation I have never ran across, and not finding too much help just searching. We have a loan for the construction of our customer's new home, but the builder that was originally contracted is no longer on the project and the customer is in the middle of finding a new builder. I am 99% sure that we cannot force place a builders risk policy, but not sure our other options. Can anyone point me in the right direction for guidance? Thank you!

It's a matter of your construction loan contract.

Meaning??? If we they don't provide coverage, then we will buy some for them? Do we just get a regular hazard insurance policy?

What is there to insure at this point - you would have to talk to an insurance agent. The new builder, I would expect that before you accepted them, you would require them to have builder's risk insurance. Depending on the State you are in, the borrower is not even a named insured. This insurance insures the builder, with the bank and borrower as an insured interest.