Construction Insurance
THE POLICY
This type of insurance covers new construction works and alterations, renovations, additions and extensions to existing buildings against any physical loss or damage not specifically excluded.
WHO NEEDS THIS COVER?
Church operated organisations and businesses, including parishes, hospitals and nursing homes, schools and colleges, that are constructing new buildings or adding or altering existing buildings.
DEDUCTIBLE/EXCESS
For dwellings, the deductibles are $500 on losses in Sydney and Melbourne and $250 in other states, for properties other than dwellings a deductible of $1,000 applies. For cyclone damage on properties located above the 25th parallel, the deductibles are $2,000 for dwellings and between $2,000 and $5,000 for other properties depending on the type and height of the building.
LIMITS OF LIABILITY
The sums insured for each insured item are shown on the schedule and these amounts are the limit that we will pay for loss or damage to that item. Our total liability under the policy will not exceed in all the total sum insured.
FIRE SERVICE LEVIES and STAMP DUTY
There is no Fire Service Levies in Queensland, Northern Territory and the ACT, the gazetted rate applies elsewhere. Where applicable, stamp duty is added and calculated on the total of basic premium and Fire Service Levies.
FEATURES and BENEFITS
As well as the policy covering contract works (made up of contract price, material or items supplied by the principal and escalation allowance) the policy can provide cover on tools, equipment, temporary buildings, scaffolding, hoardings, formwork and false work, demolition, clearance and removal of debris, architect, engineers', surveyors' and consulting fees, construction machinery and existing permanent buildings or structures held in care, custody or control of the principal, contractor or sub contractor.
The policy has two expiry dates, the construction period expiry date and the maintenance period expiry date. Most contracts have a maintenance period of 12 months. We follow up with the client prior to the planned completion date to see if the dates need to be extended and to check the anticipated final contract value.
OPTIONS/EXTENSIONS
Where an existing building is being altered, extended, added to or renovated, the construction policy can be extended to include an amount to cover loss or damage to the existing building(s), and in some circumstances there are disadvantages in covering the existing building under the Construction policy rather than the Composite Risks policy.
IMPORTANT POINTS
The policy does not cover:
- Wear and tear, corrosion, oxidation or deterioration due to lack of use or atmospheric conditions, any fault, defect, error or omission in design plan or specification.
- The cost of replacement, repair or rectification of loss or damage caused by any fault, defect, error or omission in material or workmanship (does not exclude resulting damage).
- Consequential loss (unless cover specifically arranged).
- Legal liability (unless the policy is extended by endorsement to include liability).
TAKING OUT A POLICY
Catholic Church Insurances Limited will assist in obtaining information necessary for providing a quotation and issuing a policy.
The Insured should minimise the extent of damage, preserve the effected parts for later inspection and immediately notify us so inspection and repairs can be arranged.
Please note: this information sheet is not intended to replace the policy wording. It is designed for information purposes only and should be read in conjunction with the policy wording. For further information or a full copy of the policy wording please contact Catholic Church Insurances Limited on 1300 655 001.
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