Property Developers Insurance

Cover for the works under construction, the materials on site and the work in progress, against events such as fire, storm, flood, theft and accidental damage. It is also called contractors’ all risks.

The completed value of the works, not the cost at the start. The value rises as materials and labour go in, so review the figure as the project grows, as under-insurance can reduce a claim.

Many policies can, as a separate section for the existing structure at its rebuild figure. A standard buildings policy can restrict cover once major works start, so check how the existing building is insured.

The building contract can set this out. Some contracts put the duty on the developer, some on the contractor, and some ask for joint names. Match the policy to what the contract says.

Where you take on site staff or labour-only subcontractors, employers’ liability is normally needed, so check it is on the policy. Subcontractors with their own business and cover may be treated differently, so tell the insurer who works on site.

Many developer policies include it as a core section, covering injury or damage to the public, neighbours and nearby property. Check that the limit suits the site and anything the building contract asks for.

Cover for damage to neighbouring property that happens without anyone being negligent, such as subsidence from piling or vibration. Some building contracts ask for it, so check whether yours does.

Some policies include owned and hired plant, tools and site huts, and others offer them as extras. Hired-in plant can carry continuing hire charges after a loss, which some policies also cover.

Yes. A developer with a steady pipeline of sites can arrange an annual policy with a maximum contract value, instead of separate cover for each project. Single project cover can suit an occasional developer.

Some developer policies carry cover on for completed units until they are sold or let, often with conditions for empty property such as regular inspections. Check how long that cover lasts.

Putting right the faulty work itself is usually excluded, but damage it causes to other parts of the works can be covered. Contractors and warranties can also play a part, so check the policy and the contract.

Tell the insurer before the cover ends. Many policies can be extended, but a lapse while work continues can leave the site unprotected, so build some slack into the period.

It can. A timber frame under construction is a higher fire risk, so insurers can set extra site security and fire conditions. Describe the construction method when you ask for quotes.

Tell the insurer at practical completion. Completed units can move to cover for unsold property, and once they are let or occupied, standard property or landlord cover takes over.

Look beyond the price to the contract works value, the existing structure, liability limits, non-negligence, plant, the period, cover for completed units and the excess you would pay.