The premises are expanding: a new hall wing, a roof renovation, a technology rebuild. Alongside the excitement come two insurance questions: what does your existing property insurance say about the works – and who covers the construction project itself? The two questions touch two separate products.
- Construction work is a change in risk: it typically needs to be reported to your existing property insurer.
- The structure under construction and the materials to be built in are typically excluded from your existing cover – that's what contractors' all-risks insurance is for: epites.biz.
- The contractor's liability insurance doesn't protect everything – your own property remains your responsibility.
Your existing policy during construction
The works redraw the risk picture: fire-hazardous work (welding, insulation), a roof torn open, alarm zones temporarily disabled, workers from outside firms on site. This can be a change that needs reporting to the property insurer – the terms may include separate rules, and in some cases restrictions, for the construction period. Failing to report it can come back to bite you at claim time: reporting a change of details. And assets under a torn-open roof need heightened loss-prevention attention: sheeting, a daily locking-up routine.
The part under construction: a different product's territory
The risks of the structure under construction, the materials brought on site, the scaffolding, and technology being installed fall outside classic property insurance – this is the world of contractors' all-risks insurance (known in the trade as C.A.R./E.A.R.). Who should take it out – the developer or the contractor – and with what content: that's a key question in the construction contract, worth clarifying before signing. The details are on the sister site: epites.biz.
The moment of handover: the critical switch
After technical handover, the new part of the building becomes part of the company's property – it needs to be brought into the property insurance: a new value, and possibly a new risk picture. The typical mistake: the new wing sits in “no man's land” for months – the construction insurance has already expired, and it hasn't yet been added to the property insurance. The right routine: have the policy amendment take effect on the day of handover. To check the full picture after an expansion: the annual review and building value.
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