Renovation and restoration projects - how to insure
When a large scale building project begins, risks for the homeowner, contractor and project manager are complex and often intertwined. If something goes wrong, and an insurance claim arises, it is in everyone’s interests that delays to completion are minimised. Building Works Insurance caters for these circumstances. It is specialist policy to protect against the various risk of a build project.
Without a specialist building works insurance policy in place it can be notoriously difficult to establish whether the contractor, homeowner or project manager’s insurance should respond to a claim.
Small scale building projects which are expected to cost less than £100,000 will usually be covered under a standard household policy but this is not the case with larger projects.
High-value refurbishment, renovation and extension projects are complex and most are managed under a Joint Contracts Tribunal (JCT) which determines in advance who will be held responsible for the design, delivery and insurance.
The best form of protection under a JCT is an insurance policy taken out in joint names to cover the building works – known as a building works insurance policy. These policies are an essential tool for Project Management.
How to Protect a Building Project with a Building Works Insurance Policy
There are important advantages of using a Building Works policy to protect any large scale building project:
- There is only one insurer covering the risk and acting in the interests of both the Owner and Project manager
- The Property Owner and Project Manager have the reassurance that a claim will be paid quickly and the project can continue – even if the contractor is at fault (in this case it is the insurer providing Building Works Cover who would seek compensation from the contractor)
- The client benefits from ‘All Risk’ cover on their home rather than just basic perils
- The policy will protect your client if the contractor walks off the project or goes into administration
- It prevents a long drawn out dispute about who is responsible for a claim
Castleacre, have considerable experience in assessing the risks associated with large scale re-build, renovation and extension projects. We can help you determine which type of insurance is needed for each project. We review the market to ensure any cover is competitive and we act as your advocate in the event of a claim.
To find out more about Building Works Insurance you can download our Guide, which also includes a selection of real-life case studies.