Are you looking forward to that most coveted home extension project? I am sure you have already done your Due Diligence which would include, but is not restricted to, procuring council approvals, estimating profitability, taking up legal matters like easements. I hope that you have prefigured builder’s insurance cover, too. If not, take it up in right earnest and do not leave a stone unturned till you have covered the aspect fully.
Licensed builders- as a rule
When you deal with licensed builders (treat this as an I-won’t-budge-from-it rule), you expect them to come with their Home Warranty insurance. They won’t find it difficult to fetch unless they have claims running against them or their projects’ profitability is under scrutiny.
Home Warranty Insurance
Now, the Home Warranty insurance cover indemnifies you against awkward events like the builder’s demise, his sudden bankruptcy (midway through your project), or his disagreement over finishing what he had clearly mentioned in the contract.
In any such event, the insurance company your builder is insured with will take it upon itself to pay you in full, even while hunting for the builder to get back its money.
Public Liability Coverage
Couple of notable asides: the builder must possess a Public Liability cover and Contract Works insurance. The former guards him well in case of third party injuries. Let us say a ladder collapses on someone passing by the premise under renovation or someone is hurt by the crowbars or wrecking balls used for garbage removal. The public liability cover will see to their treatment and compensation in such a case.
Contracts Works Insurance
The Contract Works insurance cover, on other hand, will ensure that all the raw materials and instruments used for the purpose of renovation are well and truly shielded from vandalism, pilferage and arson.
Consider the scope of your own policy
You must also ensure, at any rate, that you have got adequate home insurance cover to back you against damages you have to bear during renovation or extension on your property. Such damages, as I talk about, need not have resulted directly due to any lapse from the builder’s side at all.
Are you insured enough before undertaking renovations?
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