Guide to property renovation insurance
If you are a construction company or a property developer, you are probably aware of the handsome profits to be made in renovation works. If you were in any doubt, you might want to take a look at an article written by a property developer and published in Home Building magazine on the 15th of July 2017.
The author’s tips on renovating for profit may appeal to any builder, construction company or developer.
Property renovation insurance
With your eye on the prize of attractive profits, however, these also need to be guarded through the cover provided by property renovation insurance.
What is this likely to cover and how does it protect your proposed building works?
Contractors’ “all risks” insurance
- just as the title suggests, this is an element of insurance cover that forms part of many construction insurance policies;
- it does very much as it says, by providing cover against the twin risks normally associated with any building project – loss or damage to the structure and fabric of the building itself and, claims from third parties alleging injury or financial loss, as described by Investopedia;
- its goal is to protect the interests of all parties to a construction project – both contractors and owners of the property;
Engineering “all risks” insurance
- similarly, engineering all risks cover provides protection for both contractor and customer against engineering design or works which result in injury or financial loss to third parties – and, so, forms an integral part of many construction insurance policies;
Public liability insurance
- this is typically an important component of property renovation insurance, because of the potential for such claims to assume very significant proportions if a visitor to the site, one of your suppliers, a neighbour or a member of the public is injured or has their own property damaged as a result of the building works;
- typically, public liability insurance provides a minimum of £1 million against such claims – but this may be varied according to the size and nature of the building works;
Employers’ liability insurance
- an essential part of most forms of construction insurance is one that is required by law;
- any employer has a legal obligation to hold at least £5 million of employers’ liability insurance to ensure that claims made by (current or former) employees who have been injured or who have contracted a longer-term medical condition may be met by the employer;
Professional indemnity insurance
- as a builder, construction company or developer, your customers are entitled to expect an appropriate level of professionalism and competence in the property renovation projects you take on;
- if you fail to demonstrate that appropriate level of competence and your customer suffers a financial loss as a result, you may be sued for damages;
- professional indemnity insurance provides indemnity against such claims.
While property renovation insurance is an important consideration, don’t forget your fleet or van insurance as part of your overall project protection.
Whatever size or complexity your operations, you are almost certain to run one or more vehicles – to transport personnel, supplies and materials from one building site to another.
The law requires that an appropriate form of motor insurance or fleet insurance is in force, so many construction insurance policies may also make provision for the necessary cover.
Construction and property renovation insurance may cover a number of important headings, all of which help to safeguard you against the risks in construction projects such as these.