Contractor All Risk Insurance for Residential Buildings

Contractor all risk insurance is vital for contractors as it safeguards them from legal and third-party liabilities. Construction projects often face multiple claims and potential damages. Additionally, residential projects are considered high-risk. To minimize these liabilities, contractors must invest in contractor all risk insurance policies.

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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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    +Premium may vary on the basis of business activity, type etc.
    +Disclaimer: The starting premium of ₹590 is for a 1-month project with ₹1 lakh Sum Insured, applicable to the occupancy 'Other sundry works for residential/commercial building' under TATA AIG in Delhi. The actual premium may vary based on occupancy type, insurer, add-ons, and location. Standard terms and conditions apply. Please refer to the sales brochure for complete details on risk factors, terms, and conditions before making a purchase.
    By clicking on "View Plans" you agree to receive assistance and agree to our Privacy Policy and Terms Of Use and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.
    The details of insurance coverage, inclusions and exclusions are subject to change as per solutions offered by insurance providers. The content has been curated based on the general practices in the industry. Policybazaar is not responsible for the factual correctness of these details.

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