Construction services insurance: insure construction site completely before commencement of construction
Things can go awry on a construction site: storm damages the shell, or construction workers experience a mishap. A building insurance insurance protects you against it. How it works, shows this article.
Construction insurance against force majeure and unforeseen events.
- Secure house construction against damage
- Protection against financial losses during the construction phase
- Construction insurance directly from the specialist
What is a construction insurance?
The building services insurance (also known as construction insurance) is a property insurance. It protects builders from unpredictable damage to the (raw) construction that occurs during construction due to force majeure and unforeseen events.
Typical cases: Thieves get worked up at night on your construction site and tear radiators out of the wall. Or young artists are suddenly of the opinion that your recently erected exterior wall is an excellent graffiti area. Or a storm demolishes your newly roofed roof. In such situations, construction insurance is helpful.
In the event of damage, the construction insurance takes over the costs incurred in remedying the damage. This can be material and labor costs as well as costs for appraisers. If you have agreed to a deductible for construction insurance, this will be deducted from the total cost.
Against what damage a construction insurance protects
The maximum duration of construction insurance is 24 months from the start of construction. The insurance ends with the move into the property. If the collection is delayed and the maximum period of two years is exceeded, you must report this to your insurer. In most cases, you can then extend the insurance cover for a one-off payment.
Not only you as the client are insured, but also all contractors and craftsmen involved in the construction. Therefore, it is customary to involve these groups in the cost of insurance contributions. Joint protection avoids litigation and construction can be continued swiftly. The building services insurance takes effect in case of damage
- through force majeure and natural events,
- due to unusual weather conditions such as rain, flooding, storm and hail,
- consequential damages of design and material defects,
- by clumsiness or negligence of the builders,
- through wanton destruction by third parties and vandalism or
- due to theft of objects permanently connected to the building (optional against additional contribution).
When the construction insurance does not pay
On the other hand, construction insurance does not protect you and your construction site from:
- Fire damage from fire, lightning or explosion – this requires a so-called fire protection insurance, which usually passes into the then required homeowners insurance after the construction phase.
- Damage due to usual weather for the season.
- Theft of unassembled parts and loose material at the construction site.
- Botch on the construction. If the contractor and his employees do not work properly and therefore cause defects, the contractor or his liability insurance must be responsible.
If the new building can not be completed because the construction company has filed for bankruptcy, the construction insurance does not pay. There is only insurance coverage for damage to the property, the building materials or the building. A construction insurance is a property insurance. Economic damage is not covered. The insurance does not therefore pay for consequential costs resulting from a bankruptcy.
Cost of construction insurance
The insurance contribution is paid only once in construction insurance, at the beginning of the contract period. The amount of the contribution varies depending on the provider, the amount of coverage selected and the scope of services. As mentioned in detail, it is quite common to involve the construction companies and trades in proportion to the insurance contribution, because insurance protection does not only exist for you as the client, but also for all services provided by persons involved in the construction.
The cheapest building services insurance is available from 150 euros, the most expensive rates beat up to 800 euros to book. As with almost all insurances, construction performance insurance means that additional benefits entail a higher insurance premium.
In addition to the basic protection, the more expensive variants also include damage cases such as glass breakage or damage caused by storm and tap water on completed building parts and offer additional services such as hotel costs for damage caused by construction delays. Here it is worthwhile to compare the performance of the individual providers exactly and then decide which package is the right one.
Which coverage is the right one
The sum insured for construction insurance should correspond to the total cost of the construction project, ie cover all material, labor and ancillary costs. This ensures that all financial consequences are covered by the insurance in case of damage.
Difference to the owner’s liability insurance
Both the builder’s liability and the building services insurance are used for your protection during the construction phase. While the building services insurance covers damage to the building, the builder’s liability protects you against liability claims of third parties, which may arise in connection with the construction.
As a builder, you are responsible for personal injury, damage to property and pecuniary losses caused by the construction activities. For example, if a cyclist crashes on the sidewalk in front of your house, the owner’s liability comes into play, because in the course of your construction work you forgot to fill a pit hole.
Find the right construction insurance
Which components of your construction project should be secured? How to calculate the coverage correctly to avoid underinsurance? Is the Feuerrohbauversicherung useful as an additive? Our insurance specialists are familiar with all aspects of home construction and the protection of real estate. They have a detailed market overview and know the tariffs exactly. So you can find a construction insurance that fits exactly to your plans.
Whether property insurance, health insurance, pension or pension – with Dr. med. Small you will always find the right insurance. Our more than 550 local consultants will show you how to protect yourself and compare the various offers for you free of charge. Just contact us!
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