Contractor All Risk Insurance for Residential Buildings: Inclusions
The following risks are covered under contractor all risk insurance for residential buildings.
- The contractor all risk insurance policy indemnifies the insured against any material damage.
- The CAR policy offers coverage for property lost.
- The legal liabilities arising due to construction work shall be dealt with under the contractor's all risk insurance policy.
- Any liability arising due to accidental loss is covered under the CAR policy.
- Injury caused to an individual due to construction operation is covered under the CAR policy.
- Loss or damage caused due to fire is protected under the CAR policy.
- Loss caused due to human error is covered under the CAR policy.
- Any damage caused due to collapse is covered under the CAR policy.
- The loss suffered due to earthquakes, storms, cyclones or any other natural disaster is covered under the CAR policy.
Contractor All Risk Insurance for Residential Buildings: Exclusions
The contractor all risk insurance for residential buildings does not cover the following risks or damages.
- Loss arising due to war at the construction site is not covered under the coverage of the CAR policy.
- Loss or damages caused to the property due to nuclear explosion is excluded under the CAR policy.
- A policyholder suffering from the loss caused due to partial or total cessation of work cannot file coverage under the CAR policy.
- Loss or damage caused due to the willful action of the policyholder shall be excluded from the CAR policy.
- Willful negligence is the exclusion of the CAR policy.
- Contractual liabilities are not covered under the CAR policy.
- The CAR policy does not indemnify the policyholder in case of normal wear and tear.
- The damage caused due to the faulty design of the residential building is not covered under the CAR policy.
Contractor All Risk Insurance for Residential Buildings: Add-ons
The coverage of contractor all risk insurance policies can be extended by adding the following.
- Loss or damage caused to the surrounding property can be added to the existing contractor all risk insurance policy.
- Maintenance visits and cover can be added to the current contractor all risk insurance policy.
- The coverage for construction equipment such as scaffolding or shuttering material can be added to the CAR policy.
- In case of the disappearance of the inventor or shortage of material, the policyholder may file a claim if it is added to the existing CAR policy.
Contractor All Risk Insurance for Residential Buildings: Claiming Process
The policyholder should follow the below-mentioned steps in order to file a claim under the contractor all risk insurance policy.
- The insured should inform the insurer about the damage or loss via phone.
- The insured must write an email to the insurer about the damage or loss suffered by him due to the event.
- The policyholder must visit the police station and lodge a complaint or FIR in case of theft or burglary.
- The insurance company shall send the surveyor.
- The policyholder must keep the loss or damage to the property preserved for the surveyor.
- The policyholder is required to obtain the claim form.
- He must duly fill out the claim form.
- He must attach the essential documents along with the claim form. This includes the written statement with regard to the claim, police report, repair estimate, technical report, etc.
- The surveyor shall investigate the damaged site.
- He shall make a report.
- The report shall be submitted to the insurance company.
- The insurance company shall examine the report.
- The claim shall be either accepted or rejected on the basis of the report.
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