Although construction of new buildings or renovation of existing buildings is a happy event, it always has a certain unawareness and uncertainty about itself.
The goal of insuring construction and erection work is to reduce the proprietary risks arising in the course of construction work and restore the pre-loss situation in the case of a loss event.
The construction and erection work insurance is a product specially designed for builders or contracting entities for the purpose of construction work, which offers insurance coverage pursuant to the principles of the all-risks insurance. Construction or erection work and equipment pertaining to construction are subject to insurance. While the sum insured of construction work equals the final cost of the construction work, the sum insured in the case of tools and temporary buildings is the acquisition cost less the depreciation, i.e. the value of the day of the property.
Upon renovation you should not forget that construction work may damage the existing building. The existing building can be involved in the insurance contract to be made, unless the damage arising from construction is compensated under the insurance contract of the owner of the building. In addition to the aforementioned property insurance, liability insurance can be provided in the contract as well as the cost pertaining to overtime and night-time work due to the need to speed of the work after the loss event. If the construction work is completed within the insurance period, the insurance will cover the costs occurring during the guarantee period after completion of the construction work.
Depending on the essence of the construction work, the contract may include a specific object of construction or work which is performed within a defined period of time, usually within one year. Usually "major" construction work is insured based on the object and "minor" construction work is insured pursuant to the principle of annual insurance. How to define "major" and "minor" is up to the company to decide.
The construction and erection work insurance is a product specially designed for builders or contracting entities for the purpose of construction work, which offers insurance coverage pursuant to the principles of the all-risks insurance. Construction or erection work and equipment pertaining to construction are subject to insurance. While the sum insured of construction work equals the final cost of the construction work, the sum insured in the case of tools and temporary buildings is the acquisition cost less the depreciation, i.e. the value of the day of the property.
Upon renovation you should not forget that construction work may damage the existing building. The existing building can be involved in the insurance contract to be made, unless the damage arising from construction is compensated under the insurance contract of the owner of the building. In addition to the aforementioned property insurance, liability insurance can be provided in the contract as well as the cost pertaining to overtime and night-time work due to the need to speed of the work after the loss event. If the construction work is completed within the insurance period, the insurance will cover the costs occurring during the guarantee period after completion of the construction work.
Depending on the essence of the construction work, the contract may include a specific object of construction or work which is performed within a defined period of time, usually within one year. Usually "major" construction work is insured based on the object and "minor" construction work is insured pursuant to the principle of annual insurance. How to define "major" and "minor" is up to the company to decide.