Construction site insurance
It should come as no surprise that renovations, expansions or construction on your property are not automatically guaranteed while in progress. Most people contact their insurance professional to tell them what work has been done so that their warranty reflects the increased value of their property, but they do so only after the work is completed. As a result, they can be greatly exposed to various risks during the construction period, hence the importance of taking out construction site insurance.
Construction site insurance (or all-risk site insurance) aims to protect owners, property developers and contractors during the duration of major renovation or construction work, and in some cases for a certain period after the end of these. this. Considering the significant costs associated with this type of project, it makes sense to take out construction site insurance to protect your investment. In fact, this type of insurance protects all stakeholders in a project in the event of loss or reconstruction.
Who can get construction site insurance?
You might think that it is only homeowners who need construction site insurance. Yet contractors, project managers, even engineers can all get hold of it, as this type of warranty covers different participants in a construction project, not just homeowners. If your contractor asks you to bear the cost of this warranty, you must ensure that the protection it offers you is sufficient for the project and that its cost is reflected favorably in the actual quote from the contractor you have hired. .
Scope of the warranty
Construction site insurance generally covers the following items, through a basic policy or optional endorsements:
reconstruction costs;
the labor required for the reconstruction work;
the existing structure (value on the day of the loss);
off-site warranty or goods in transit;
earthquakes (optional);
flooding (optional);
legal provisions;
sewer backups;
fire service response costs;
recharging of fire protection installations;
valuable documents and records;
professional fees;
scaffolding, formwork and temporary structures.
Coverage will include set policy limits and, in some cases, deductibles. Remember to read your insurance policy carefully for the complete list of warranty inclusions. These may vary depending on the policy and the province where you are insured.
Warranty exclusions
It is important to note that a construction site insurance policy generally does not cover the following items:
tools and equipment used by the contractor as well as mechanical breakdown of said equipment caused by negligent use;
losses attributable to an inherent defect (design, material or workmanship defect) and normal wear and tear;
motor vehicles on the site;
damage caused by pollution.
Remember to read your insurance policy carefully for the complete list of warranty exclusions.
Advantages
The guarantee is specific to a project and can be personalized by adding endorsements according to the specific risks to be covered.
Proof of insurance for the project is established through a single policy.
If you are a commercial insurance client, construction insurance gives you access to risk management professionals who can sometimes help you spot minor issues before they become major through their expert advice or support. their site visits. Please see the following case study.
Case study
Problem - A risk management specialist is performing the last inspection of a construction project covered by construction site insurance for which he has managed all stages. While examining the chamber of mechanical devices and technical equipment using his thermographic camera, he noticed a cold area coming from one of the copper pipes. Upon further examination, he discovered a puncture leak from a sleeve that needed to be repaired.
Solution - The risk management specialist immediately reported this issue to the home contractor, who was able to correct the issue within days. Had this leak not been detected and patched quickly, the custom-made wooden wall adjacent to the mechanical device chamber could have sustained considerable damage. This leak could also have
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