The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
Enter your details; you will receive a proposal within one working day.
We compare the offerings of several insurers
An adviser checks whether the cover suits your activities
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
A developer has a different interest in the project policy from the party who takes it out. The contractor insures his construction risk and his liability. You insure the capital that grows on site with every pour and every facade panel. Those two interests run parallel until there is a loss, and no longer after that.
So the key question is whether you are named on the CAR policy as a co-insured with your own right to payment. Without that, you cannot report anything, claim anything or enforce anything yourself, and you are dependent on a contractor who may at that moment be in dispute with the insurer himself, or go bankrupt.
The second point is the date. On the day of handover the cover on the works ends and your own risk as owner begins. With phasing that happens part by part, and it is precisely there that damage falls between two policies.
What does CAR insurance for property developers 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.
Put the insurance requirement in the specification, not in an email
Include in the building contract that the contractor takes out a CAR policy with you as a co-insured, with a sum insured at least equal to the contract sum plus your associated costs, and with the existing property section where work is done in or against existing buildings. Also stipulate that you receive the policy schedule before work starts and that any cancellation during the term is reported to you. Otherwise you only hear about a cancellation once there is a loss.
The day after handover you are the owner of a building
As soon as the works has been handed over, the works section stops and you are held to account as the owner. Article 6:174 of the Dutch Civil Code makes you liable for defects in the building that create a danger, even where the fault was made during construction. Arrange for your buildings insurance to start on the day the CAR cover ends, and with partial handover, per phase. A gap of one day between two policies is not a formality but an uninsured building.
Delay costs you more than the damage itself
Fire or collapse during the finishing phase means repair work for the contractor and, for you, months without rental income, with financing costs running on and obligations towards buyers or tenants. That delay loss is not part of a standard CAR policy: it calls for separate cover for delay in completion, which you take out as the interested party and which is based on your forecast income and not on the repair costs.
What falls outside it and where you meet it anyway
The project policy does not pay for a design fault by your architect or structural engineer. The consultant's professional indemnity insurance is on the hook for that. Penalties you owe to buyers, the costs of a delayed permit and the extra costs of soil remediation also fall outside it. For your own liability as client for the contractor's mistakes, which can certainly affect you through Article 6:171 of the Dutch Civil Code, you need public and employers' liability 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?
Total investment value of the project. Not only the contract sum, but also fees and associated costs that you would incur again on rebuilding.
Number of phases and partial handovers. Every phase boundary is a transition between covers and calls for separate recording.
Duration of the project. A longer construction period means longer exposure to storm, theft and vandalism.
Location and surroundings. Building in an inner-city setting between adjoining properties weighs more heavily than a project on an open plot.
Type of property. Housing, business premises and healthcare property each have their own loss profile and level of finish.
Delay cover included. Cover for lost income after an insured loss is assessed separately and priced separately.
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.
Can I take out the CAR policy myself instead of the contractor?
Yes. A policy taken out by the client is usual on larger projects. You then set the sum insured, the sections and the excess yourself, and you keep control when there is a claim. You include the contractors and subcontractors as co-insured. Offset the premium in the contract sum, so that the contractor does not price it in twice.
What happens if my contractor goes bankrupt during the build?
If the policy is in his name and you are not named on it, you have no claim of your own and your claim runs through the trustee in bankruptcy. If you are named as a co-insured, you can report the claim and demand payment yourself. On development projects this is the sharpest argument for checking in advance that you are named on the policy schedule.
From what moment does my buildings insurance have to run?
From the day the CAR cover on that part of the building ends, so usually the handover date. With phasing that applies per partial handover: the block handed over is no longer works and falls outside section 1, while building continues alongside it. Put the dates side by side in one overview and have both insurers confirm them.
Does the CAR policy cover a mistake by my structural engineer?
The physical damage that flows from a structural fault is covered subject to conditions, but improving the design itself and the cost of better execution are not. The designer's professional indemnity insurance is on the hook for his liability. So stipulate in the consultancy agreement that such cover exists and is maintained during construction.
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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