An example of requests we receive from Architects re arranging insurance for developments:
At Construction Insure we work alongside many Architects and below are a few examples of some of the requests they ask us to deal with to help them place property developer’s insurance for their clients.
Case Study 1:
We are working on a domestic renovation and extension project at the above address. We are currently in the process of preparing the tender documentation and we anticipate a construction start around end of November.
On behalf of our client I am looking for an All-Risks joint names insurance policy for the Employer (our client) in the joint names of his own and the contractor to cover the existing building, the works and site materials for the building contract period (insurance option C under the contract). For reference I attach Clauses 6.7 – 6.11 on pages 57 – 59 & Schedule 3 Option C on pages 77 & 78 of the form of contract.
Are you able to assist in this matter? Could you please provide us with a quotation for the requested insurance?
Following project details for your information;
Project address: 14 xxxxx Mews, London NXX 5XX
Description as existing: Commercial workshop (B2 use), used as residential garage, with residential flat above.
Proposal: renovation and extension of the flat. The works involve the internal strip out and conversion of some, but not all, of the workshop to residential use.
Description: Refurbishment/reconfiguration of the existing building and garage into a self-contained two-storey, three-bedroom apartment with separate garage; including all stripping out of existing finishes and services, repair and overhaul of existing roof finishes, new rooflights, new staircase, new walls, floor and ceiling finishes, new external windows, doors and external terrace, new mechanical and electrical services, together with necessary structural alterations.
Proposed contract form: JCT Standard Building Contract without Quantities 2011 Edition with contractor’s design, incorporating Amendment 1. The Insurance clauses have been approved by the Association of British Insurers.
Occupancy: current tenant is due to vacate the property in November. The property will be unoccupied during construction.
Client’s current insurance: the current Landlord Insurance policy held by the client is due to expire in January 2017, and the Insurers informed us that they would not renew the policy if the property was unoccupied. In addition, they don’t provide insurance policies under the Joint Names framework.
Approx. construction cost: £ 500,000 (based on QS’ budget estimate)
Anticipated construction starts: Nov/Dec 2016
Anticipated contract period: 6 months
Please let me know should you require any further information or clarification. I look forward to hearing from you.
Case Study 2:
Thanks for your note. As you will be aware most responses to your queries below cannot be given until a Contractor is appointed but will be provided as soon as we can. For your information I’ve attached a copy of the draft contract that has been provided to the tenderers. We need to have in place Contract works Insurance & site materials in joint names with the Employer and the Contractor – Clause 6.7.A, A non-negligent jct 21.2.1 damage to third party property to a limit of indemnity of £5,000,000 for any one occurrence or series of occurrences arising out of one event.
The following is an extract from the tender document to give address of property & brief description of the works. Please advise if you require further information at this stage.
1.1.1) PROJECT PARTICULARS
1.1.1.1) Name of project: XXXXXXXXX
1.1.1.2) Nature of project: XXXXXXXX is a semi-detached 3 storey, house (ground to second floor) of approximately 1,840 sq ft with rear garden & front driveway. This project comprises the demolition of this existing house with consequent temporary support & protection to the adjoining property, & the construction of a new build house of approximately 4,150 sq ft over basement, ground, first & second floors with associated external works.
The proposed Works comprise:
- Demolition;
- Basement construction & waterproofing;
- Erection of new structure;
- Underground drainage;
- Full internal fit out & finishing;
- Complete mechanical & electrical services installation
- External works to front driveway & perimeter of new build
1.1.1.3) Location of project: XXXXXX
Case Study 3:
I received your details from Alex in the morning. He said you will be dealing with the insurance for our client XXXX from Flat xxxxxxxx.
Insurance of the Works — For the works we are planning to do, client has signed Minor Works contract. There are three insurance options within Section 5 – Injury, Damage and Insurance.
1. Clause 5.4A
Insurance of the Works by Contractor in Joint Names
2. Clause 5.4 B
Insurance of existing structures and the Works by Employer in Joint Names
3. Clause 5.4C
Insurance of existing structures by Employer in own name
4. Clause 5.4A and 5.4C (split responsibility)
– Works insurance by contractor
– Existing structures insurance by Employer
A Non-Negligence Insurance clause can be added as an appendix to the Minor Works Contract.A non-negligence All-Risks joint names insurance policy must be in the joint names of the employer and the contractor so that the existing building, the works and the contractor’s property (site materials and tools) are also covered against non-negligent risks while it is in your house. This is normally regarded as a direct extension to a normal domestic policy.
We have recommended client to sign a Minor Works contract with Clause 5.4 B – Insurance of existing structures and the Works by Employer in Joint Names and client has agreed with this.
JCT clause 5.4B requires the employer to “Joint Names” insurance policy for the new works and the existing structure and required to have both the employer and contractor named on the same insurance policy.
As you can see we get all different types of enquiries through Architects for clients either developing their homes or for property developer’s insurance where the client is erecting a new build or converting an existing structure.