The excitement of making a dream home out of your flat, upgrading your store to modern standards or prepping up your business for the digital age can often overtake any thoughts being given to insurance.
Even the most ordinary accident can lead to prohibitive costs by damaging your contract materials such as decoration materials, flooring, wallpaper, sanitary ware and so forth, impacting the value of your property and triggering compensation claims from third parties such as your neighbours, which could hurt your budget. To avoid extra financial burden, getting the right insurance before construction starts is vital.
AXA’s Contractors “All Risks” Insurance is a flexible and simple insurance designed to give comprehensive coverage for property owners or tenants involved in renovation projects. Generally, the insurance covers damage to contract material at the construction site and liability to third parties for maximum protection, it also comes with the option to cover liability to third parties alone.
Product Features
Major Exclusions
- War risk, terrorism, sanctioned countries, asbestos and so forth
- Any renovation works that started before insurance
- Liability arising out of or in connection with erection and/or dismantling of scaffolding
For details of all exclusions, please refer to the Policy.
Additional Protection
Case Sharing
Case 1
An extensive interior renovation project was carried out in an apartment in a well-known large-scale residential complex. The project was covered by our Contractors “All Risks” Insurance, which came into effect before work commenced.
| • Contract Sum | HKD300,000 (no scaffolding work involved) |
| • Sum Insured for Liability to Third Parties | HKD10,000,000 |
| • Premiums paid | HKD1,650 (covers both Section 1 and Section 2) |
| • Compensation paid | HKD300,000 |
During the contract period, the floor collapsed as the fittings of the bathroom was being demolished, causing damage to several electrical appliances and the sanitary ware of the downstairs unit (that is, the third party). The costs associated with this accident included reconstructing the floor between the two bathrooms, repairing the bathroom and replacing the electrical appliances of the downstairs unit. Other claims included the hotel expenses incurred by the residents of the downstairs unit which became uninhabitable due to the accident, and various items such as the inspection service fees of the Buildings Department. Overall, the compensation reached approximately HKD300,000.
Case 2
In preparation for moving in, an entire house was renovated, including the replacement of water pipes. The project was covered by our Contractors “All Risks” Insurance bought before renovation started.
| • Contract Sum | HK400,000 (no scaffolding work involved) |
| • Sum Insured for Liability to Third Parties | HKD20,000,000 |
| • Premiums paid | HKD2,000 (covers both Section 1 and Section 2) |
| • Compensation paid | AXA defended on behalf of our insured and paid all legal expenses. |
After coordinating with the building management office and shutting down the water’s main switch, the contractor installed new water pipes inside the insured unit and then notified the management office to re-connect the water. Everything was fine for a few days until the management office alerted the owner (our insured) that the water pipe connected to his unit had burst, releasing a large amount of fresh water. Flooding the corridor, the water flowed into the elevator pit and damaged 3 elevators. This accident resulted into a claim of approximately HKD500,000 against our insured by the Owner’s Occupation.
Upon receiving the claim from our insured, AXA’s Claims Department immediately commissioned a surveyor to investigate. The investigation showed that the section of the water pipe that burst was located outside the insured unit. Since the contractor only replaced the pipe located inside the insured unit, the accident cannot be attributed to the negligence of our insured or his contractor and that they should not be liable for any loss from this accident. AXA defended on behalf of our insured and paid all legal expenses.
Frequently Asked Questions
1. To take out a Contractors “All Risks” Insurance, should the property owner or the contractor submit the application? Does it matter?
2. My contractor will outsource some of the work to another company. Do I need to add this sub-contractor to my policy?
3.Can I only get cover for liabilities to third parties?
4. How do I know whether my protection for liability to third parties is sufficient?
5. My renovation project involves working on scaffolding. Am I insured?
6. What is the longest contract period covered? What should I do in case of project delays?
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Disclaimer
Product Features
Major Exclusions
- War risk, terrorism, sanctioned countries, asbestos and so forth
- Any renovation works that started before insurance
- Liability arising out of or in connection with erection and/or dismantling of scaffolding
For details of all exclusions, please refer to the Policy.
Additional Protection
Case Sharing
Case 1
An extensive interior renovation project was carried out in an apartment in a well-known large-scale residential complex. The project was covered by our Contractors “All Risks” Insurance, which came into effect before work commenced.
| • Contract Sum | HKD300,000 (no scaffolding work involved) |
| • Sum Insured for Liability to Third Parties | HKD10,000,000 |
| • Premiums paid | HKD1,650 (covers both Section 1 and Section 2) |
| • Compensation paid | HKD300,000 |
During the contract period, the floor collapsed as the fittings of the bathroom was being demolished, causing damage to several electrical appliances and the sanitary ware of the downstairs unit (that is, the third party). The costs associated with this accident included reconstructing the floor between the two bathrooms, repairing the bathroom and replacing the electrical appliances of the downstairs unit. Other claims included the hotel expenses incurred by the residents of the downstairs unit which became uninhabitable due to the accident, and various items such as the inspection service fees of the Buildings Department. Overall, the compensation reached approximately HKD300,000.
Case 2
In preparation for moving in, an entire house was renovated, including the replacement of water pipes. The project was covered by our Contractors “All Risks” Insurance bought before renovation started.
| • Contract Sum | HK400,000 (no scaffolding work involved) |
| • Sum Insured for Liability to Third Parties | HKD20,000,000 |
| • Premiums paid | HKD2,000 (covers both Section 1 and Section 2) |
| • Compensation paid | AXA defended on behalf of our insured and paid all legal expenses. |
After coordinating with the building management office and shutting down the water’s main switch, the contractor installed new water pipes inside the insured unit and then notified the management office to re-connect the water. Everything was fine for a few days until the management office alerted the owner (our insured) that the water pipe connected to his unit had burst, releasing a large amount of fresh water. Flooding the corridor, the water flowed into the elevator pit and damaged 3 elevators. This accident resulted into a claim of approximately HKD500,000 against our insured by the Owner’s Occupation.
Upon receiving the claim from our insured, AXA’s Claims Department immediately commissioned a surveyor to investigate. The investigation showed that the section of the water pipe that burst was located outside the insured unit. Since the contractor only replaced the pipe located inside the insured unit, the accident cannot be attributed to the negligence of our insured or his contractor and that they should not be liable for any loss from this accident. AXA defended on behalf of our insured and paid all legal expenses.
Frequently Asked Questions
1. To take out a Contractors “All Risks” Insurance, should the property owner or the contractor submit the application? Does it matter?
2. My contractor will outsource some of the work to another company. Do I need to add this sub-contractor to my policy?
3.Can I only get cover for liabilities to third parties?
4. How do I know whether my protection for liability to third parties is sufficient?
5. My renovation project involves working on scaffolding. Am I insured?
6. What is the longest contract period covered? What should I do in case of project delays?
Meet our Financial Consultant via virtual appointment!
Experience our seamless digital enrollment platform! Meet, buy, sign, pay and upload documents safely from the comfort of your home.
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