The TAMA 38-2 insurance policy, unlike most urban renewal insurance, is ostensibly a simple policy, just as a project of this type appears to be a simple, regular construction project.
In practice, this is often a project whose construction involves unusual and special risks, and in response to them, unique insurance solutions are required that are determined according to many variables and factors that play crucial roles here. These have an impact on the insurance coverage that the insurance company will be willing to provide.
To clarify this important point, we propose to examine the matter from two angles:
First, what deters the insurance company from simply selling a policy without rummaging through every clause, including exclusions to coverage, and stating restrictive conditions and clauses, disclaimers, and strict protection requirements?
The second is how to properly prepare, plan, and deal with the insurance company to obtain broad insurance coverage that matches the real risks of the project, your desires, and your budget.
TAMA 38-2 insurance, a complex project requires broad coverage and... an expert agent.
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The reasons for caution that insurance companies exercise when issuing a TAMA 38-2 policy
Insurance companies' sensors are sharpened from the outset in light of the high level of risk that distinguishes all types of urban renewal programs compared to other regular construction projects and the insurance policies required for them, such as contractor work risk insurance, developer insurance, etc. The TAMA 38-2 project includes the demolition of the existing building and the construction of a new building in its place. If the building designated for demolition is isolated from the environment of nearby buildings or a busy block, then the risks may be normal. However, in most cases this is not the case.
Crowded urban work environment
Such projects are intended for urban renewal, usually in the heart of the city. The risk of damage to adjacent buildings during demolition work, especially when buildings with common walls are connected to each other (see the streets of the Florentine neighborhood, for example) only increases the risk of an insurance event occurring.
Closure of traffic and logistics routes
Police involvement is often required to close roads and direct traffic for the purpose of transporting heavy mechanical equipment, preventing risk to residents in nearby buildings or passersby while carrying out demolition work, sometimes it is necessary to cease business activity of stores and businesses in nearby buildings so as not to endanger business owners and the general public - and so on. The need and preparation in these areas only burden the TAMA 38-2 insurance policy with more risks that must be insured against.
Engineering solutions for parking needs
The buildings designated for demolition are often located on small areas. The TAMA 38-2 project usually requires the developer to provide each tenant with parking, which requires engineering solutions such as digging parking basements and/or deep pits for parking multipliers. Such excavations can damage nearby buildings, as a result of weakening the ground support or vibration damage, and damage urban infrastructure.
Groundwater breach due to deep excavation
In various urban areas (such as entire streets in Tel Aviv) - there is a significant limitation in terms of excavation depth resulting from risks of groundwater breaching that require water lowering. This is complex work involving many and varied risks for extensive third-party claims. It is no wonder that insurance companies, which have suffered quite a few damages in this area in recent years - usually refuse to insure projects that include water lowering, and therefore carefully examine the soil consultant's report to ensure that the excavation depth does not drop below the groundwater level.
Schedules and overheads
This aspect is important both in the proper planning of the project and the overheads in its execution, and also in preparing for the execution of land reports in the early stages and feasibility studies in principle for the insurance of the project. It is well known that addressing these aspects close to the start date of construction (or even some apply after it has already begun) may disrupt the project's schedules, in the absence of insurance coverage and long processes to obtain it, with all the enormous financial implications of such delays.
Finally, unexpected
To conclude and conclude this section, we would like to emphasize that projects of this type are largely characterized by 'unexpectedness.' Insurance companies are also aware of this fact, which only increases the degree of caution they exercise and the costs they demand. Therefore, it is clear that proper professional guidance may prevent great distress and significant unplanned damage due to failure to take into account the set of considerations and problems presented above.
How Do We Deal With Insurance Company Requirements and Concerns?
Leading Agency
We built the status of the leading insurance agency in the construction industry through hard work for over 30 years, during which a close working relationship and great trust was created between us and the insurance companies we represent, built on professionalism, transparency, and integrity. This is definitely an excellent opening position for formulating a broad insurance coverage.
Valuable Knowledge and Experience
If you've read all of the above, you've already understood the importance of accumulated knowledge in dealing with the complex aspects of project insurance, so every word here is superfluous. Our knowledge and experience are at the disposal of our clients and are expressed daily in insuring many projects throughout the State of Israel.
Reduced Cost
Alongside the knowledge and experience available to you on the way to issuing a TAMA 38 insurance policy with protection requirements and possible execution guidelines, at a high level that matches your desires - we will also strive to bring about cost reduction.
Extended Insurance Coverage Alongside the complex process on the way to purchasing insurance, parts of which have been mentioned so far, we strive and build for our clients a policy that 'covers all the bases': a combined policy containing all the risks in contractor works adapted to TAMA 38-2 works at the highest level, each according to their desires and budget.
In Execution Speed Receiving an offer for a TAMA 38-2 insurance policy sometimes requires a very long inquiry time, not to mention the considerable time sometimes required to issue complex policies such as this. And despite all this – we can do it efficiently and quickly.
Close Guidance We provide daily availability and especially when an insurance event occurs, close professional guidance within which we have a team of insurance experts available to help you exercise your rights in accordance with the policy terms.
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Construction evacuation insurance
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Building preservation and restoration insurance
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Professional liability insurance for contractors
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Safety in the TAMA 38 project
In the TAMA 38 Strengthening Project, the tenants are walking around in the middle of the workers' feet, and the construction manager has no authority or ability to supervise them. They are also unaware of the dangers that an active construction site entails. Thus, in terms of safety, it is clear that the tenants are the weakest link exposed to the most risks. Even so, a project like TAMA 38 is complex and problematic, and it makes no sense to add problems and risks to it...
Insurance company survey
A tool that allows you to expand your coverage and reduce exclusions and requirements from the insurance company.
Performed on behalf of the insurance company by an expert surveyor in the construction industry, and he is the one who will usually determine the mandatory protection requirements for insurance coverage for the project, as well as the terms of coverage in the event of damage or physical injury to an employee or third party in the project.
The survey will sometimes even affect the way the work is performed. Damage Controls Failure to comply with the survey requirements may even result in the denial of insurance coverage...
Survey to document the condition of nearby buildings
A tool that allows you to expand your coverage and reduce exclusions and requirements from the insurance company.
A documentation survey of adjacent buildings is a condition for covering damage due to shaking and weakening of ground support for buildings adjacent to the project in third-party insurance and is extremely important for insurance coverage.
The survey is intended to document the condition of the buildings adjacent to the construction project before work begins in order to determine, if damage will be caused to nearby buildings, to what extent, if any, the work caused this damage...
Examples of projects we have secured
