Construction insurance
Site risks: CAR policies, liability, what's covered
By topic
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.
Construction insurance doesn't replace technical supervision — it covers events, not quality. For a private house the keys are: contractor liability in the contract + property cover during works.
About Construction insurance — site risks
Construction insurance — site risks — CAR policies, third-party liability, cost, exclusions — what's actually covered on a build site.. Construction: estimate, utilities, geology, permits, winter building, acceptance, insurance, terms. Use our tools without registration or installing software. All calculations happen in your browser — your data is never sent to a server.