Building a house is a huge undertaking. When it comes to insurance, it makes no difference whether you’re planning a new build or a renovation – damage can be incurred at any stage of construction. But what specific type of insurance do you need during building work? We’ve put together a guide so you can get the most appropriate insurance cover for your construction project.
Lots of different people work alongside each other on a building site. Time pressure is often a critical factor because one building phase can only be started once the previous has finished. This means even the slightest act of negligence can quickly lead to a catastrophic accident or damage to the building, which can put the contractor under immense financial strain. To protect against this kind of unforeseen incident, you need sufficient insurance cover for the duration of construction work.
During construction, a structure can sustain damage or be completely destroyed, for example due to an accident. To cover any costs that may arise, it’s mandatory in most cantons to take out building insurance to cover damage caused by fire and natural hazards. But insurance cover will only be in place if the building insurance company has been notified of the building or renovation work. This means that before any work begins, you should inform your cantonal building insurance company in order to ensure the building is protected against structural damage from the start. If building insurance is not mandatory in the canton where you live, it is still highly recommended to take it out privately.
After construction work is completed, a valuation of the new or renovated building will be carried out and the insurance policy will continue with the increased insurance value as regular building insurance.
It’s possible for damage to be inflicted not only on existing buildings but also on the surrounding area. If, for example, a neighbouring property is damaged because of the building work, the contractor is obliged to cover any associated costs. To insure against this kind of damage, you therefore need builder’s liability insurance.
This insurance covers potential damage including the following:
For this and similar kinds of damage, builder’s liability insurance covers justified claims for personal injury and property damage.
Many different construction companies are involved in a new build, from kitchen installers, floor layers and plumbers to electricians, and many more. Say an installer damages work that has already been completed out of negligence: that’s when construction sector insurance comes in. But it’s not just damage caused by people that’s covered by this insurance; it’s also damage caused by incidents such as heavy rainfall or a leaking pipe.
Finally, and unfortunately, kitchen appliances that have already been installed, other already installed components or tools and machinery belonging to contractors are often stolen. Construction sector insurance also covers theft and acts of vandalism.
When all building work has been completed and you’re able to move in to your new home, alongside the usual building and contents insurance, there are supplementary insurance policies that are highly recommended. Did you know that mandatory building insurance doesn’t cover damage caused by water from leaking pipes? For this and other incidents, the following insurance policies are available:
In our online insurance guide, you’ll find all the information you need on the different kinds of insurance and an overview of all home insurance policies.
You can read the guide online now or pick up a free printed brochure from one of our Engel & Völkers shops.
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