Building, Construction & Renovations

Construction insurance is a different kettle of fish to standard business or home insurance as insurers are dealing with buildings exposed to the elements and varying levels of security… if any!

A Construction policy has two parts – first is cover for the physical works being done, so if the building caught fire, there are funds available to start the project again and clean up the damage.  If the project is part of an existing structure, we may be able to extend cover to include the original building value too – this is important as standard building insurance might exclude cover while works are being done.

The second part of the policy is Liability – and how this operates will depend on the type of policy you are taking (e.g. are you a builder with multiple projects on the run, or just a concerned owner taking cover on your unit during renovations?).  Compared to a normal business liability policy a Construction Policy is more flexible as it’s designed for the building industry.  It can easily include clauses that head contractors might require – e.g. “cross liability clause” or a “waiver of subrogation”.

There are further extensions to the policy which can include options such as tools, plant, materials in transit and professional fees – and you can select a defects liability period that matches your project.

  • Other Trade Businesses – e.g. Shopfitters – who want to insure the works they are doing alongside the rest of their business insurances

Who needs this cover?

  • Builders – you will generally want an Annual Construction policy that covers multiple projects from year to year
  • Sub-Contractor – you may be required to have a Single Project policy naming the Main Contractor to work on a particular job
  • Owner Builders – you will want a Single Project policy for your current development
  • Renovators – if you own your house or unit and are renovating, you may wish to take out a Single Project policy as your home policy could be void while renovations are underway and your builder’s policy may only cover the renovations he is working on
  • Other Trade Businesses – e.g. Shopfitters – who want to insure the works they are doing alongside the rest of their business insurances