What insurance do I need to build my house?
Do you want to undertake construction or renovation work? This very often involves calling on various service providers: project owner, architect, construction company, etc. In this context, understanding ‘who is responsible for what’ is not always simple. Inventory of responsibilities and required insurance.
Poor execution
The most worrying thing when starting work is to discover there is a fault. But what happens if your roof only starts to leak one year after it was repaired? Poor workmanship or faulty workmanship is the responsibility of the person carrying out the work. In this example, you would have to turn against the roofing company.
But there are cases where determining and proving a company's responsibility can be an uphill battle. And if lengthy proceedings have to be conducted, compensation can be slow in coming.
What’s more, you should also know that, in Luxembourg, apart from architects, the people working on a building site are not obliged to take out liability insurance. So if the craftsman is not insured, obtaining compensation from him may well prove to be long and costly.
How can you protect yourself? As the project owner, you can take out a Ten Year Civil Liability insurance for all the people working on the site. It guarantees against faulty workmanship that compromises the solidity of the structure and resulting from poor execution or failure to comply with the rules of the trade. In the event of a problem, there’s no search for liability and the insurer compensates you quickly.
Damage on site
A building under construction is fragile. During your work, a storm or fire can destroy the site at any time and make you lose a lot of money.
Home insurance, which is free during the works, protects you against a site fire, whether it’s a new build or the complete renovation of an existing home.
But as long as the building is not closed (roof, windows, doors), other risks are not covered. Just imagine that a section of wall collapses during a storm?
And as long as the building is not habitable, the contents are not covered. So what happens if your radiators and plumbing fixtures are stolen while they are stored in your future living room?
To protect yourself, you can take out comprehensive construction site insurance. This coverage protects you in case of theft and any type of damage on the construction site during the execution of the work.
Of course, when it comes to protection against theft, there are certain instructions to be followed to deter opportunists, such as fencing the worksite with gates and securing it.
Insure your home with a full coverage: fire, storm, multimedia, travel, sports equipment, theft and breakage and much more
Works that damage neighbouring buildings
Imagine you are building your house. A few months after the start of the work, cracks appear on your neighbour's façade. He turns up and demands compensation.
The responsibility lies with the project owner, i.e. the person carrying out the work or having the work carried out. The problem is that, more often than not, you are the project owner. So, you must be wondering what the role of your architect is. He is only the prime contractor, i.e. he directs the execution of the works, without actually initiating it.
In this example, you will therefore be the one held liable for damage caused to the neighbouring building. Again, it is the All Risks Construction Site Insurance that can protect you from any damage caused to a third party. This covers you during the work and during the maintenance or servicing period, which generally lasts between 12 and 24 months.
Ten Year Liability and All-risk Construction Site Insurance should therefore be the two policies to take out in order to avoid your works turning into a nightmare with procedures that can last for years.
