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How to Insure Home Contract Works

Contract works insurance, also known as contractors all risk insurance, in my opinion, is just as important as choosing the right builder! This then becomes essential for high value works as the property is at a far greater risk from factors outside of your control. Contract works insurance, at it’s simplest, covers the works in progress on a construction site for almost any peril or loss, such as fire, flood, storm, malicious damage and theft. There are however other exposures to take into consideration such as the damage to existing structure, neighbouring properties and general liabilities etc.

Some contracts may be undertaken under JCT Contracts (Joint Contracts Tribunal). These contracts have very specific requirements in relation to the insurance clauses that apply to the contract, and are there to clearly define responsibilities in the event of a loss. In my opinion, expert advice is required because relying on the contractor’s insurance policy may not suffice.

Furthermore, in my experience, there is a real lack of understanding for contract works insurance. Firstly the homeowner doesn’t truly understand it and the architect will say the homeowner requires it but doesn’t help. Additionally, the existing insurance broker may only come across one case a year so will not have the knowledge to advise, and the builder/contractor will say they have it but doesn’t understand it or how exposed their cover will leave the homeowner!

This is why an experienced insurance broker is required to take the time to help. In the event of a claim, it will be the homeowner who is ultimately responsible, not the architect or builder. Also I find, with all of the elements being juggled in modern life, and with building works planned, high net worth individuals need an insurance broker to take care of the their biggest asset.

At Macbeth, we are a Chartered Insurance Broker, which tables us within the top 5% of insurance brokers in the UK. We pride ourselves on our knowledge and service. Should you require any assistance on contract works insurance, please contact our high net worth insurance expert Carl Sharp on 0118 916 5487 or carl.sharp@macbeths.co.uk

Take a look at Carl’s more recent blog on the subject of Home Works Insurance here.

Author: Carl Sharp | November 2nd, 2016

Contact the author

Carl Sharp
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk