New Build – What Insurance You Should Consider

When building a new property, as well as taking the time to make sure you have the best tradesmen and materials for the build you also will need to take into consideration what construction insurance policies you will need to take out, if for any reason, something was to go wrong.

It is important when looking for builders insurance Liverpool, to take into consideration all eventualities rather than just the main ones such as Public and Employers Liability and Contractors All Risk Insurance.

Here are some of the most popular trades insurance Liverpool that you may want to consider are:

Flood Insurance

Flood plains have become increasingly problematical for homeowners and property insurers. Due to climate change we are now seeing greater amounts of rainfall creating a rise in flood insurance claims.

When looking for an insurance package it is worthwhile for you to seek flood insurance for a new build property so that you are protected if the eventuality were to occur during your build.

Integrated project insurance

Integrated Project Insurance (IPI) insures not only the client but also the other partners including, consultants, specialists, manufacturers, construction managers and their supply chains.

It replaces liability-driven professional indemnity insurance which financial loss cover where the outgoing cost is above the target cost.

Latent Defects Insurance

Latent Defects Insurance provides cover for new buildings or existing buildings with new works. Examples of latent defects could be damage to pipes in walls, leaking roofs and even damp.

This insurance is more of a complete cover as opposed to Collateral Warranty which may require proof of breach of contract which can take considerably longer and can be subject to complications such as insolvency.

Collateral Warranty

Collateral Warranty is a separate agreement between two parties who wish to extend their duty of care. This type of contract is usually between the contracting party and a third party who is not a party to the original contract.

This is typical with a developer and the occupier who will be covered if any subsequent defects may occur as a result of the build.

Residual Value Insurance

This insurance is designed to underwrite valuations of assets at the date of termination of lease or other financing arrangement. The benefits of this type of insurance are mostly the providers of financial assets or manufacturers. However, shareholder and business owners can also benefit due to shareholder value being extra protected.

Performance Bond

Performance Bond is an insurance that benefits the client against the risk of a contractor failing to fulfil their contractual obligations. This type of insurance is usually taken out for the event that a contractor may become insolvent before completing the contract.

Performance bonds are commonly used in the construction industry and guarantee compensation up to the amount stated in the bond. This bond is usually stated by the contractor and can depend on the financial strength of the contract bidding party.

Terrorism insurance

This type of insurance can be taken out as an addition to a conventional building or commercial policy or on a stand-alone basis. Terrorism insurance covers you in the event of an act of terrorism which may cause material damage.

Terrorism Insurance is particularly relevant in areas which are considered high risk terrorist targets such as London or Manchester.

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