The concept of urban renewal includes building plans such as: evacuation and reconstruction, TAMA 38 of various types, reinforcement of buildings against earthquakes, preservation and rehabilitation of old buildings, combination/demolition and construction transactions.
The first harbinger of the urban renewal trend was the legendary Neighborhood Rehabilitation Program designed to renew distressed neighborhoods and breathe new life into them by improving housing conditions and urban infrastructure.
Indeed, one swallow does not herald the coming of spring, but over time, the range of goals that the urban renewal trend can serve has expanded:
Changing social fabric - Increasing attractiveness to young population to revitalize neighborhoods inhabited by veteran and aging population or 'problematic' population.
High land utilization – Building upward based on existing structures while reinforcing and renovating them with the aim of utilizing urban land optimally.
Reinforcement against earthquakes – With the sharpening realization that buildings in the country are not resistant to earthquakes, regulations, laws, tax relief, and building permits were formulated to increase the attractiveness of performing building reinforcement work.
Protection from rocket threats during war - Urban renewal allows for the addition of safe rooms and/or construction of new and protected buildings. An important purpose in Israel, which is constantly subject to security threats.
Preserving heritage and history – The developing trend of preserving old buildings is also included in urban renewal plans.
Common to All Types of Urban Renewal Plans
In fact, there are three parameters common to all projects in the field of urban renewal:
All deal with treatment of an existing structure, whether it's demolition and rebuilding or renewal of a structure, its upgrade, reinforcement, or expansion.
All require handling existing residents. Sometimes - construction work in a building housing residents during the execution of the work and sometimes: evacuating residents to alternative housing until completion of the project.
All involve (usually) performing construction work in a dense and busy urban environment with special risks arising from this fact.
For all these, and especially for projects that house residents and construction work simultaneously, there are insurance implications that distinguish urban renewal insurance from 'regular' construction work insurance policies.
Urban renewal insurance - the special features:
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Here is a brief overview of each of the urban renewal programs from an insurance perspective:
Construction evacuation insurance
A construction evacuation insurance policy, which is part of the urban renewal insurance family, is seemingly simple to implement, but is sometimes complex to plan, formulate, and produce. This is because adapting it to the characteristics of the project requires not only specialization in construction industry insurance, but also a broad view of the social environment and a descent into deep resolutions regarding construction processes, execution schedules, delivery dates, municipal regulations, safety laws, and more. This and more...
Building preservation and restoration insurance
Building preservation and restoration insurance is the type of project in which insurance companies exercise extreme caution and 'search through the trinkets' of the project before issuing a policy - and the reason is clear. Building preservation and restoration work usually involves great risk and a high probability of damage, and therefore, particularly high compensation costs, both because of the dilapidated condition of the building (sometimes) and the high chance of its collapse (complete or partial), and because, in the event of an insurance event, the building must be restored and brought to its original state, sometimes in a very precise and Sisyphean manner...
TAMA 38-2 Insurance and its amendments
TAMA 38-2 insurance, one of the two main urban renewal insurances, is sometimes one of the most complex, especially when it comes to demolishing an existing building and building a new one in its place in a very dense urban environment. This fact increases the likelihood of insurance events, and therefore, the insurance company will strive to include exclusions, special clauses, and protection requirements in the policy.
In most cases, the construction of a TAMA 38-2 project involves complex work in a populated and busy area, often requiring the closure of traffic routes and disruption to the daily routine of residents of an entire street. Often, this involves the demolition of a neighboring building that may be adjacent to the building that is about to be demolished with a common wall.
In light of the above, it is clear that the TAMA 38-2 insurance policy is not as innocent and simple as one might think.
Such projects require some thought ahead in properly planning insurance coverage.
It is clear from this that if you want to benefit from extended insurance coverage, you should...
Insurance TAMA 38 1-3 and its amendments
The TAMA 38 1-3 project is primarily intended to strengthen an old building against earthquakes. Since it is not a demolition but a renovation, a situation is created in which the building houses tenants and construction work is taking place at the same time. This data increases the level of risk and the likelihood of an insurance event, therefore, it has a critical impact on the TAMA 38 1-3 insurance policy: Will the insurance company agree to issue a policy? And if so, what will be the exclusions, the protection requirements.
Formulation, construction and issuance of a TAMA 38 1-3 insurance policy are among the most complex given the special risks for such projects and the high likelihood of an insurance event and claims.
The exceptional situation in which a construction site houses tenants and construction workers while construction work is being carried out is enough to understand the sensitivity shown by the insurance company, which is expressed in the requirement to include exclusions, conditions, special clauses, and general protection requirements in the policy.
Adding to the list of special features of this project is the risk of possible damage to the existing structure while the work is being carried out...
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Insurance for strengthening buildings against earthquakes
Public buildings, buildings for conservation, heritage sites, and the like that need strengthening and upgrading are not included in the framework of TAMA 38 plans, but are included in other master plans that discuss strengthening buildings against earthquakes. Here, similar to other urban renewal insurance, insurance companies see the high insurance risk. Therefore, the correct response to insuring these projects is to plan a broad policy to strengthen buildings against earthquakes, and not an insurance policy for 'regular' contractor work...
Safety in the TAMA 38 project
It is important to maintain, refresh, and adhere to the safety rules in TAMA 38 , and there are solid reasons for this: First, the special characteristic of these projects - a construction site that "houses" tenants and workers simultaneously. Second - the construction manager has no ability or authority to supervise the tenants. Third - the tenants have no background or understanding of construction processes, and as a result, they are also unaware of the dangers that lurk around them. Thus, beyond the personal responsibility of managers and workers, this is a situation that must be addressed by the developer in two different ways...
Examples of projects we have secured
