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Does a Construction All Risk Policy cover damage to surrounding property?

Yes, damage to surrounding property is covered by a construction all risk policy, provided it’s included as an add-on to the Contract Works cover. This means an extra premium would be charged to get the specified surrounding property covered.

Surrounding property is any property located on, or adjacent to, the construction site, which is held in custody or control by the Contractor. It’s important to note that cover for damage to surrounding property would not be applied to construction, plant, equipment and erection machinery.

How does cover for damage to surrounding property work?

When properties such as houses, malls, offices etc. undergo renovation or repairs only the alterations are covered under the Contract Works, not the existing structure. This means the existing structure should continue to be insured under the existing Buildings insurance policy because the Contract Works would cover the newly renovated or extended portion of the building.

A common misconception amongst homeowners, architects, engineers and project managers is that the existing property insurance will automatically provide cover whilst an extension is being built, but this is not necessarily the case.

If the existing buildings Insurer is unable or unwilling to cover the existing structure, then the Surrounding Property add-on should be activated.

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Some dos and don’ts when managing a Contractor’s All Risk claim

INSURANCE FOR THE CIVIL & CONSTRUCTION INDUSTRY CALL US ON 080 777 777 1 Some dos and don'ts when managing a Contractor’s All Risk claim. Contractor’s All Risk claim , our knowledge of the industry is our key advantage in achieving outstanding claims success. Building...

When a Disgruntled Employee Sabotages Your Structure…

Does Contractors Liability on the Contractors All Risk policy cover damages to a structure, caused by a disgruntled employee’s pre-meditated sabotage?

What is not covered by a Contractors All Risk Policy?

The main part of the Contractors All Risks insurance is the Contract Works section which provides cover for the property being worked on (e.g. new house, etc.). But it’s important to be aware of what’s not covered by a contractors all risk policy, these are just a few examples:

What is ‘Practical Completion’?

Practical Completion doesn’t mean the Contractor has finished the Works in every detail. It means the Works are sufficiently complete to be safely used by the Employer for the purpose he intended. The Contractor may still complete minor items and fix defects after Practical Completion, as long as the Employer isn’t inconvenienced.

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