Surveys to document the condition of neighbouring buildings Let’s keep relations neighbourly!
Arranging a survey to document the condition of neighbouring buildings is a precondition to the validity of the extension of the insurance cover for damage due to vibration, removal of support and weakening under the Third Party Liability section of the BIT 2013 Contractors All Risks policy wording.
The aim is to survey the condition of buildings neighbouring the construction project before the works start in order to determine, in the event of damage to neighbouring buildings, to what extent, if at all, your works have contributed to these damages. The greater the risk of damage to neighbouring buildings, the more important it is to conduct such a survey. Failure to conduct a survey and submit it to the insurance company before the project starts could lead to a situation whereby you are left without any cover for such damages.
In this context it is very important to pay attention to small details as part of the process of formulating a professional insurance portfolio for the project, and I would like to draw your attention to some important information:
To obtain a quotation for insurance cover tailored to your needs
Various types of contractors’ insurance, with specific reference to National Outline Plan 38 projects, Demolition and Rebuilding Projects demand extensive knowledge not only in insurance but also in the construction industry.
This is where it is important to have in-depth knowledge of the construction processes, working methods, equipment, professional staff (planners, buildings and inspectors), without which it would be almost impossible to know what tools are essential for devising a Contractors All Risks policy or other policy for the construction industry, including cover for vibration, removal of support and weakening by way of a survey to document the condition of neighbouring buildings. In fact, in most cases such a survey is not actually sent to the insurance company and the contractors exposes themselves to unnecessary risks (and from experience we have seen that many claims in this area are repudiated by the insurance companies). Furthermore, there are various other types of expert reports and surveys that can be arranged to pave the way for maximum insurance cover.
It’s important to remember…
The construction industry is highly intricate. Major projects involving significant budgets with the hope of high profits come with the risk of significant losses in the event of inadequate insurance.
Such losses will be paid for either from your pocket or from a professional designed insurance policy.
And so, before we continue to review the issue of surveys to document the condition of neighbouring buildings, we invite you to contact us before starting any new project
“Itzick Simon – The Leading Contractors Insurance Agency in Israel”
What can cause damage to neighbouring properties?
Let’s look at a scenario where a pre-survey has not been conducted…a situation that I can promise you will not happen with us:
There are in fact countless possible scenarios: Works to excavate a basement level near or adjacent to a neighbouring third party building, colliding in a fence or party wall, works with a roller or other drilling machine that shakes a frame or causes cracks and fractures in the walls of the neighbouring property, a crane that collapses, land subsidence in the project site that “drags” the car park of the neighbouring property with it.
Say for example, that next to the project site there is an old building (a fairly common situation in the case of urban renewal projects). The foundations are in any case rickety; the external walls show signs of cracks…and more.
If you’ve started excavating the foundations before you’ve undertaken a survey to document the condition of neighbouring buildings, even without causing any damage – the neighbours could still sue you for damage that has existed for years, and in your capacity as a building contractor it will be very difficult for you to prove otherwise in court. In turn, when you come to make a claim under your Contractors All Risks insurance policy, the insurance company will argue that you didn’t provide them with a survey of neighbouring buildings before the policy was arranged – in accordance with the policy conditions for vibration, removal of support and weakening cover – and will mostly likely repudiate the claim or make reduced indemnity payments at best. If only someone had drawn your attention to the need to conduct a survey to document the condition of neighbouring buildings – everything would have turned out differently.
Our motto – the leading construction insurance agency in Israel – has been earned brick by brick (or policy by policy) over the course of 25 years of hard work (including “getting our hands dirty” with mud, cement and nails in our boots!). Over these years we have acquired expertise in the construction industry and accumulated knowledge, professional experience and an extensive network of professionals serving the industry. Our status and expertise is recognised by the insurance company underwriters who give us preferential treatment in underwriting Contractors All Risks policies.
All of this gives us a competitive edge that you won’t find anywhere else:
We devise creative solutions to pave the way for maximum insurance cover and all this at a surprisingly competitive price.
We work with a team of experts in the construction industry with the specialist knowledge and skills to deal with any risks that can arise, to assist us with arranging surveys, inspections and expert reports.
We are available at all times to assist you with any matter that arises and ready to provide you with advice and guidance with a view to ensuring you avoid unnecessary risks. In the unfortunate event of a major claim, we can arrange for our team of construction insurance experts to enter the picture and ensure you are fully compensated for your loss.