Construction insurance

What construction risk covers

A Contractor's All Risks (CAR) policy covers damage to the object from fire, natural disaster, material theft, erection errors. It insures the object, not liability.

Third-party liability

Separate coverage: damage to neighbors (settlement from excavation, falling structures), third-party injuries on site.

Cost & term

CAR ~0.1–0.5% of works value for the build term. Rare for private houses, standard for commercial objects and contractors.

Exclusions

Usually excluded: latent design defects, wear, errors in design documentation, fines, unpermitted works, pre-existing damage.

Warranty obligations

Contractor warranty repair isn't insurance: it's performed under contract. Insurance covers an event; warranty covers work defects.

Practical notes

For a private house the more real need is contractor liability and site property cover for fire/theft during works. Read exclusions about unattended materials on site.