Contractors All Risk Insurance for Sundry Works and Residential Buildings

Contractors All Risk Insurance for Sundry Works for Residential Buildings: Inclusions

The contractor all risk insurance policies for residential buildings provide coverage against the following risks.

• The CAR policy indemnifies the policyholder against any loss or damage caused due to construction faults
• The CAR policy covers the policyholder against loss or damage caused due to fire
• The CAR policy covers the insured against loss caused due to earthquake
• Any loss or damage caused due to negligence or human errors shall be covered by CAR policy
• The material damage falls under the purview of CAR policy coverage
• The legal liability that arose due to accidental damage shall be covered under a CAR policy
• Any shock or allied perils shall be covered under the CAR policy

Contractors All Risk Insurance for Sundry Works for Residential Buildings: Exclusions

The contractor's all risk insurance policy does not provide coverage for the following.

• Any loss or damage caused due to a nuclear explosion shall not be covered under the contractor all risk insurance
• Damage caused due to partial or total cessation of work shall not be covered under the CAR policy
• Any loss committed willfully by the policyholder shall not be covered under the CAR policy
• Loss or damage caused due to the utilization of defective material is not subject to cover under the CAR policy
• Any loss or damage caused due to the deployment of bad workmanship shall not be covered under the CAR policy
• Faulty design is not subject to be covered under the CAR policy
• Normal wear and tear falls under the exclusion of CAR policy

Contractors All Risk Insurance for Sundry Works for Residential Buildings: Add-ons

The followings are the add-ons of CAR policy for sundry works for residential buildings.

• A policyholder may extend the coverage of the CAR policy by availing the coverage against the damage caused to the surrounding property
• Loss incurred to the policyholder due to shortage or material can be covered under the CAR policy
• The policyholder may add coverage of bodily injury caused to any third party or employee due to the removal of debris
• Coverage for the equipment or machinery can be covered under the CAR policy

Contractors All Risk Insurance for Sundry Works for Residential Buildings: Claiming Process

The policyholder may follow the mentioned below steps in order to file an insurance claim under the CAR policy.

• The insured is required to inform the insurance company about the loss or damage caused to the property
• The policyholder is further required to write a letter to the insurer delineating the loss or damage caused to the insured property
• The insured must lodge an FIR or complaint if the loss is caused due to theft or burglary
• The policyholder must try or strive to minimize the loss to the best possible extent
• The insurance company shall appoint a surveyor
• The surveyor shall investigate the event
• The surveyor shall make the report about the loss caused to the insured
• The surveyor shall submit the report to the insurer
• The insurer shall either accept or reject the claim on the basis of the report submitted by the surveyor

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