Construction all risks (CAR) insurance for extensions and additions
With an extension, your new work hangs on a building that stays standing and usually stays occupied; from the moment the facade is opened up, your risk and the client's run into each other.
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A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
In construction terms an extension is two things at once. Your new addition is the works and falls under section 1. The house you are building against belongs to the client and specifically does not fall under it; the existing property section is needed for that. On public and employers' liability insurance that damage founders on the care, custody and control exclusion, because you have the building in your charge during the work.
The pivotal point is the opening up. From the moment the facade is opened, the house is no longer wind and watertight and temporary props carry part of the structure. Everything that goes wrong after that (a crack, a wet floor, a settled lintel opening) affects someone else's property that simply stays in use.
The third point only arises later. New and old stand on different foundations and settle differently, and the joint between the two roofs is where leaks arise. That rarely shows during construction. So also look at the conservatory variant and to the renovation variant if the work goes further than the extension alone.
What does CAR insurance for extensions and additions cover?
The structure of the cover in three parts, with an overview per situation below.
Section 1
The works
Damage to the works themselves during construction or installation.
Fire, storm and water
Theft of materials
Inherent defect and design fault
Vandalism on the building site
Section 2
Liability
Damage to property and persons of third parties on and around the works.
Adjoining premises
Injury to bystanders
Cables and pipes
Optional
Extensions
What comes into play alongside the works themselves.
Client's existing property
Ancillary plant and site huts
Maintenance period
What is covered
Situation
Works section
Liability section
Storm or water damage to the works in progress
Yes
No
Theft of materials from the building site
Sometimes
No
Damage to an adjoining building
No
Yes
Injury to a bystander
No
Yes
The client's existing property
Sometimes
Sometimes
Repair of your own defective work
No
No
This overview is general in nature and is not personal advice. What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) of the insurer; you receive both before you take out cover. Taking out cover without advice? Then read what execution only means for you.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
Opening up is a structural operation
A hole in a load-bearing facade calls for temporary support calculated for the actual load. If something fails because the propping was too light or was removed too early, the expert will treat that as a workmanship error and not as sudden damage. Repairing your own work is then at your expense. The consequential damage to the house is usually covered, provided the existing property section is in place.
New and old do not settle at the same rate
The new foundation bears differently from the existing one, particularly on soft ground or with a shallow-founded extension next to a piled building. The crack that results often appears months after handover in the connecting joint. If the cause is a design choice by the structural engineer, that is professional indemnity and not a CAR claim. So have the choice of foundation recorded in writing by whoever makes it.
The house stays in use during the build
The occupants usually go on living there, with their belongings within reach of your work. Contents are not automatically part of existing property; have it recorded expressly whether they are included. Damage from dust, mortar splashes or damp entering gradually is also often excluded as a gradually operating influence. Screen off the opening, cover floors and photograph the adjoining room before you take out the first brick.
The connecting joint and the notification period
A leak at the detail between the new roof and the existing facade only shows itself in the first heavy driving rain, sometimes a season later. Make sure the maintenance period on the policy spans that period and that you can demonstrate how the detail was executed with photographs. If the client reports something, pass it on without unnecessary delay; Article 7:941 of the Dutch Civil Code requires that, and late notification costs you cover.
Existing property is the most commonly missed section
If you work in or on an existing building, that building is not your works but the property of the client. Damage to it does not fall under section 1 and, on your AVB, falls under the care, custody and control exclusion. The section existing property fills that gap, and with conversions, renovations and installation work that is not an edge case but the core of the risk.
The maintenance period continues after handover
After handover there is often a maintenance period during which you remain liable for defects that arose during construction. Agree that period explicitly and have it stated on the policy. Under the Wet kwaliteitsborging (the Dutch Building Quality Assurance Act) this carries more weight: Article 7:758(4) of the Dutch Civil Code places the burden of proof for hidden defects on the contractor.
What does your premium depend on?
Contract sum for the extension. The value of the new work itself forms the basis for section 1.
Value of the existing building. The sum insured for existing property has to match the house you are building against.
Load-bearing opening or not. An opening in a load-bearing facade with temporary propping is a heavier risk than an extension against a blank wall.
Type of foundation for the extension. Shallow, screw piles or driven piles: the chance of differential settlement and of vibration damage varies considerably.
Occupied during the works. If occupants and contents remain present, the chance of damage to the client's property increases.
Length of the maintenance period. A leak at the connecting detail comes to light late. The period should span at least one wet season.
Insurers weigh these details differently. That is where your saving is.
How we arrange it
You request a quoteWe take stock of your situation, your risk and your wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
Only with the existing property section. The house is not your works, so section 1 does not cover it, and on your liability insurance it founders on the care, custody and control exclusion because you have the building in your charge during the work. Include that section for the actual value of the part within the zone of influence of the extension, not for a token amount.
Who pays for the crack in the joint between old and new?
That depends on the cause. If the crack is due to a workmanship error, repairing your own work is at your expense and the consequential damage to the house is usually covered. If the cause lies in a wrong choice of foundation on the structural drawing, that is a design matter belonging with the structural engineer and their professional indemnity insurance.
Are the occupant's contents covered?
Not automatically. Existing property relates first of all to the building. If you also want the occupant's belongings covered, have that included expressly. In any event, avoid the argument afterwards: have the occupant remove vulnerable items from the work zone and record with photographs how the room looked before you started.
My client is a private individual. Does that change anything?
Not for the cover, but it does for your contractual obligations. Under a building contract with a consumer you have to state in writing whether and how your liability is insured. That follows from Article 7:765a of the Dutch Civil Code. Put it in the quotation rather than in the small print. More on that is set out on the page about private clients.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
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