In case you’re rebuilding or perhaps extending your building or perhaps erecting a fresh one, you are going to need builders risk insurance to be in place from the moment work starts to when it finishes. The kind of policy that covers damage or loss to the brand new work is referred to as “Contractors All Risks” or perhaps sometimes “Contract Works”.
We’ve managed this cover type for numerous years as well as know from experience that many property owners believe that the current insurance policy of theirs for a building being refurbished or perhaps extended will automatically cover them for all new work whilst in progress.
Regrettably, this’s not usually correct – although you need to remember to inform your current insurers of any work being undertaken before it starts. Additionally, when it’s completed, advise them of any increase and any changes of rebuilding costs.
Before works commence, in case you’re using a primary contractor, get proof in writing (and keep a copy!) that they carry Contractors All Risks insurance with a limit of cover enough to cover the contract price with you. You must also obtain in writing (again, keep a copy) they carry builders risk insurance.
Do not forget about that as the person instructing the work, you’re the “employer” therefore if anything fails, the buck stops with you. Moreover, it does make the contractors seem to be more responsible in case they’re in a position to demonstrate they offer the appropriate insurances. Do you truly wish to deal with cowboys?
Along with this particular cover in place, you’ll be able to be certain that should there be a flood, fire, vandalism or storm (check the policy wording to find out what the extent of cover is) that the builder will be in a financial position to either repair or perhaps restart the project.
Versatile Insurance specialises in Contract Works insurance schemes for builders, tradesmen and property developers. Operating in Northern Ireland and great Britain, Versatile Insurance has built up an unparalleled range of contacts within the construction industry enabling us to offer fast and competitive quotes including Public Liability insurance and Business insurance. Our friendly and experienced highly team are here to assist and advise.