At Duncan Thompson Extensions we take insurance and responsibility of contracts seriously when working with our clients on their home extensions. Many builders operate their own independent businesses and, as such, take out their own insurance. On any building site, there can be a multitude of subcontractors in operation at any given time. Each subcontractor should carry their own public liability insurance, to cover claims against them arising from the performance of their work. Here at Duncan Thompson Extensions we support our clients for the whole of their building project, and subcontractors are not permitted on site until we have a copy of their current public liability insurance. Part of our policy is to ensure your house renovation or extension project has the correct and appropriate insurance in accordance with industry requirements.
Insurance policies that need to be considered before commencing your building project are:
- Public liability (Builder/Contractor)
- Home Owner’s Warranty Insurance — 7 years after completion.
- Construction Insurance
- Existing Property Insurance
Public Liability Insurance: Public liability insurance provides protection for amounts the “Insured” (i.e. the parties stated in the policy) may become legally liable to pay compensation (i.e. damages) in respect of “Third Party”, personal injury or property damage, as a result of an occurrence in connection with the business of the insured. The crucial point is that public liability insurance protects only the Insured Parties. Therefore, unless a specific provision is made in the builder’s policy to include subcontractors, a subcontractor will not be covered by the builder’s policy. Similarly, you will be left uninsured if the builder’s insurance policy upon which you were relying isn’t current and in force.
(Sourced: Master Builders Association, November 2016).
Home Owner’s Warranty Insurance: Home Owner’s Warranty Insurance insures the owner (or subsequent owners) against non-completion of the building contract due to death, disappearance or insolvency of the builder, and failure of the builder to correct faults, which are deemed by law to be the builder’s responsibility, for a nominated warranty period. These contingencies are poor workmanship, structural faults, and inadequate or unsuitable materials and are only triggered by the death, disappearance or insolvency of the builder.
Existing Property Insurance: Clients must have House and Contents Insurance up to date before commencing an extension to their home. Talk to your insurance company and get clarification of what they will and won’t cover. At Duncan Thompson Extensions we may be able to assist you if you have concerns about your level of cover.
Construction Insurance: Construction Insurance will protect the homeowner during the building process, including any malicious damage and vandalism, theft, fire damage, storm, wind and water damage that may occur. If finance is being obtained for the extension from a lending institution, they may require evidence of a Construction Insurance policy before releasing any funds.
At Duncan Thompson Extensions our quality assurance program promotes compliance with all building industry insurance requirements and will support you to ensure your extensions and renovations are built and completed with appropriate insurance as required by current obligations.