Question and Answer - When is it required to extend the contractor's work insurance for your project?

answer

 The issue of when the work is completed and the insurance is extended, or terminated, is very important. Many believe that receiving Form 4 is an indicator that there is no need to continue the insurance – and this is a mistake. Below are guidelines for when it is or is not necessary to extend the insurance: 

 Below are some guidelines for when and how to extend contractor work insurance: 

 1. Apartments for which Form 4 and occupancy approval have been received, and which have been delivered to tenants for use - there is no need to include the value of the apartments in the insurance extension.

 Third-party liability and employer liability for maintenance repairs are covered under the "maintenance period" in the project's contractor policy, up to 12-24 from the date of completion of the work (as specified in the policy).

 2. Apartments in the process of being delivered that have not yet been delivered for use - the insurance must be extended while taking into account the value of the construction cost of these areas.

 3. Apartments in the process of being sold where the work has not yet been completed and/or it is known that adjustment or completion work will be required - the insurance for the contractor's work must be extended for the value of the construction cost of these apartments.

 4. Unsold apartment inventory - if there is a Form 4 and occupancy permit, and as long as the work on them has been completely completed, there is no need to extend the insurance for them, but it is important to purchase apartment/business inventory insurance for them.

 5. Public areas that have been delivered for use and their formal delivery has been made - there is no need to include their construction cost in the insurance extension.

 Third-party liability and employer liability for maintenance repairs are covered under the "maintenance period" in the project's contractor policy, up to 12-24 from the date of completion of the work (as specified in the policy).

 6. Public areas for which delivery has not been made - the insurance for the contractor's work must be extended for the value of the construction cost of these areas, as the areas are still in the process of completion and inspections. 

 From now on, they said: As long as any work continues and workers, contractors, subcontractors, suppliers, etc. move around the site from time to time, and as the threshold tends toward your possession of the assets in the interim periods, it is advisable to continue the insurance in the form of a contractor's work policy.

 For your convenience, we have compiled all the information in a dynamic form.