Buildings Insurance - Is it required before work begins?

[subzero]

Hi

I understand that builders have insurance in the event that the house collapses (for example) during extension works.

However, should the owner of the house also have buildings insurance in place? Does this type of insurance also cover disasters caused by the builder? (I suspect not)

 

[geraint]

Hi

I understand that builders have insurance in the event that the house collapses (for example) during extension works.

However, should the owner of the house also have buildings insurance in place? Does this type of insurance also cover disasters caused by the builder? (I suspect not)

you cannot have two insurances .... one insurance should cover...

 

[Geps]

You don't have two insurances though - you have one and the builder has one.

You have to declare on the buildings insurance whether significant building work is taking place and the premium does increase so I would have thought it would cover it BUT it would depend on the circumstances of the situation.

 

[flameport]

However, should the owner of the house also have buildings insurance in place

Yes, because various disasters can occur which are unrelated to the building works. e.g. high winds blow the roof off.
The builders should also have insurance to cover such events as walls collapsing, fires, people being injured and other problems caused by their work.

There shouldn't be any overlap between the two insurances, but if there was, in the event of any claim, it would be up to the insurance companies to decide who ultimately pays for what. Some incidents could also take weeks/months to determine if there was any negligence on the part of the builders (and therefore if their insurance covers the damage), and you don't want to have a destroyed house while all that goes on.

 

[Blagard]

Insurances in construction can be a nightmare.

A builder should carry public liability insurance as a matter of course, but don't assume he has. He should be able to provide a standard letter from either his insurers or his insurance broker to confirm his poilcies are in place and current. - This does not cover his cock ups!

The Builder may also carry an "All risks" type of policy but again you would need to know what it covers and if it is current (it may be combined with pubilc liability insurance, such as certain tradesman insurances that are available)

Your household building insurance (if you have any, not a contents insurance) will almost certainly not cover any problems arising from the builders cock ups. Again you need to read your policy just in case.

On formal building contracts (major works) where an extension is made to an existing building, the contracts often require that either the builder insures the works or the Client (you) insures the works. Usually a separate policy has to be taken out to cover the work for a set period and value.

Even with a contract in place, it does not guarantee insurance have actually been taken out and paid for. That means you can only sue the builder for any negligence, if he has any money to sue for!

You can have many insurance policies, but none may cover the risks you are talking about.

You should ask the builder if he is insured for what you want and ask him to prove it (Then check it yourself).

 

[IJWS15]

As Blagard says

Your house insurance will not cover the builders mistakes . .

He should have public liability in case he injures you or a passer by . .

He should have employer's liability insurance if he employs anyone (other than bona fide sub-contractors (with Motor the only insurance which legally must be in place)

He should have works insurance (All risks) to cover the coast of rebuilding if his work falls down or gets vandalised (consider riots) when he has done most of the work (or he must be finaincially stong enough to re--do the work without it - as my employer is)

If you (or the builder) used a designer, architect or SE they should have professional indemnity insurance (and should maintain it for a number of years after they finish the work (It is claims occurring not events occuring insurance)

The builder may have a commercial combined policy which covers most of these things (Except PI) and his broker will provide him with a "To whom it may concern" letter which sets out the cover in place that he can give to clients.

 

[jeds]

Hi

I understand that builders have insurance in the event that the house collapses (for example) during extension works.

However, should the owner of the house also have buildings insurance in place? Does this type of insurance also cover disasters caused by the builder? (I suspect not)

It's unusual for builders to insure ordinary domestic works because they do not normally take 'possession' of the works like they would in a commercial project. They insure everything else - public, employers liability etc - but not normally the works itself. If it was an unusually large contract and the builder does take posession and insure the works it should be in joint names with the employer. This avoids the situation where one insurance company pursues another in the event of a claim.

Really it is better for the employer to extend their own house insurance to cover domestic works. You should inform them anyway and will probably be charged a premium anyway so there is no point paying for contractors cover as well.

 

[geraint]

You don't have two insurances though - you have one and the builder has one.

So who is insured,,,,,,

Only one.....

 

[geraint]

Hi

I understand that builders have insurance in the event that the house collapses (for example) during extension works.

However, should the owner of the house also have buildings insurance in place? Does this type of insurance also cover disasters caused by the builder? (I suspect not)

It's unusual for builders to insure ordinary domestic works because they do not normally take 'possession' of the works like they would in a commercial project. They insure everything else - public, employers liability etc - but not normally the works itself. If it was an unusually large contract and the builder does take posession and insure the works it should be in joint names with the employer. This avoids the situation where one insurance company pursues another in the event of a claim.

Rubbish. The main contractor takes full responsibility insurance wise...

try and claim when two people have insured the same thing....

joke man

 

[jeds]

Geraint; As usual you are talking out of your arse. Might be best stick to things you know something about - which I know would be severely limiting for you but better than leading people into potential big trouble with your guesses and other dreamed up boll ocks.