Damage to neighboring buildings during contractor work
Oct 17, 2017
Article by Itzick Simon
One of the common mistakes in contractor insurance policies is related to damage caused to neighboring third-party structures during the execution of project work. Damage to nearby structures may be caused when excavations are carried out near buildings, drilling, demolition of adjacent buildings, etc. - work that may cause ground displacement and weakening of a supporting support or soil.
To his surprise, damage control - the contractor receives a refusal from his insurance company, which is not willing to accept responsibility for the damage - and here is the explanation.
The third-party chapter of the contractor's policy in the edition commonly used on the market: the 2013 Bit Terms of the "Clal" insurance company (which have been "adopted" by most insurance companies in Israel), excludes from insurance coverage damages caused by shaking and weakening of supports or ground supports. In most policies, the extension against this exception to insurance coverage is purchased - almost automatically. But what?
There is a condition for coverage: The customer is obligated to conduct a survey to document the condition of the nearby structures , at his own expense, with the assistance of a constructor - and to forward the survey to the insurance company before work begins.
Is it any wonder that most of these claims are denied? Few customers conduct such a survey, so they are left without coverage when the day of judgment comes.
Article by Itzick Simon
One of the common mistakes in contractor insurance policies is related to damage caused to neighboring third-party structures during the execution of project work.
Damage to nearby structures may be caused when excavations are carried out near buildings, drilling, demolition of adjacent buildings, etc. - work that may cause ground displacement and weakening of a supporting support or soil.
To his surprise, damage control - the contractor receives a refusal from his insurance company, which is not willing to accept responsibility for the damage - and here is the explanation.
The third-party chapter of the contractor's policy in the edition commonly used on the market: the 2013 Bit Terms of the "Clal" insurance company (which have been "adopted" by most insurance companies in Israel), excludes from insurance coverage damages caused by shaking and weakening of supports or ground supports.
In most policies, the extension against this exception to insurance coverage is purchased - almost automatically.
But what?
There is a condition for coverage: The customer is obligated to conduct a survey to document the condition of the nearby structures , at his own expense, with the assistance of a constructor - and to forward the survey to the insurance company before work begins.
Is it any wonder that most of these claims are denied? Few customers conduct such a survey, so they are left without coverage when the day of judgment comes.
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