Welcome to Howe Maxted Home Owners Building & Works Division
We are able to arrange cover for all aspects and eventualities of a residential new build extension or refurbishment including on a bespoke basis the following:
For the homeowner:
- The Existing Structure whilst undergoing works and or unoccupied pending works
- Liability that might attach through ownership of the land pending commencement of works
- The Contract Works themselves and in joint names with the contractor if required
- Self build contracts can be insured
- Liability that might attach through the construction phase
- Building Contracts – Standalone or as an extension JCT Clause 21.2.1 or similar (JCT 6.5.1, 6.2.4, previously 19(2)(a))
Insurance is available [non negligent liability] - Residential housing Structural Warranty Insurance
- The Contractors Public and Employers Liability
- The property must be a private dwelling but it does not have to be the homeowners ultimate main or second home
Our Business Objectives
- To achieve a thorough understanding of our client’s needs for insurance protection and sound risk management advice
- To arrange effective cover promptly for our clients tailored to their needs, which is priced competitively and backed by first class insurers with sound security
- To provide our clients with a personal and comprehensive level of service that is readily accessible
- To handle all claims diligently and to keep you the client the fully informed
What can we do for you?
- As a client of Howe Maxted you will receive the professional and personal service that the independent insurance broker can offer
- Howe Maxted and its component specialist departments can offer an efficient, competitive service
- If your interests are not served by an existing market, we can assess, design, broke and manage a tailor-made insurance programme for you
Why work with a specialist insurance broker?
- We understand the risks and pressures you face – we speak your language
- You will get the right cover where you need it – and NOT where you do not
- You will feel supported with expert advice to help you make the right insurance decisions
- Our specialist team will arrange policies with the aim to prevent gaps and expensive duplications between policies but at a competitive premium
- Anyone amateur can arrange an insurance policy but by using a specialist professional commercial broker you will purchase peace of mind which is ultimately all an insurance policy is, if you have no peace of mind it is not worth buying the policy. As the oil fire fighter Red Adair once said, ‘If you think a professional is expensive, wait ’til you try an amateur’ !
Why would a Homeowner need any of the above types of insurance?
When notifying your current household Insurer of a significant home renovation, refurbishment or extension project, one can frequently find themselves faced with numerous difficulties;
The Existing Structure
(ie the building outbuildings walls gates fences patio’s etc prior to the work commencing.)
The majority of standard household insurers are unable or unwilling to accept the risk of insuring a property that is undergoing building works. Some insurers will look to terminate cover immediately works commence or they may reduce cover insuring simply fire, lightning, aircraft and explosion only (referred to as FLEA cover). Obviously this has implications for you as the homeowner not only in respect of other damage being caused but also of being in breach of any mortgage obligations that may apply which might require wider insurance cover on the property.
The Contract Works
(ie the materials used in the works carried out at the property for example bricks, timber, tiles, kitchens and bathroom units, heating and electrical component parts)
It is important to state that these are not perceived to be general household contents but are part of the works in progress that will form part of the new building or the fixtures and fittings. Most Household Insurers will look to exclude these Contract Works, preferring to leave the arrangement of cover to the Contractor. This means the homeowner is reliant upon the contractor’s insurance to provide adequate cover.
The issues to be concerned with here are:-
- The contractor may not have contractors all risks insurance,
- fail to arrange such cover,
- be in breach their policy conditions, or,
- as happens regularly the principal contractor has the cover, however the insured appoints various sub contractors directly rather than appointed by the main contractor, they may not be insured individually and their works will not be covered under the principal contract’s works policy.
- In the event of a loss potentially 2 insurers are involved in a claim and there could be lengthy discussions and therefore delays between the building and works insurers as to who deals with what aspect of the loss
Howe Maxted have the skill and expertise to arrange such policies for you.
Liability Risks
This concerns injury or damage to a third party or their property whilst works are on-going and the financial compensation they may seek as a result. The homeowner has created the risk and will be the first to be pursued for compensation by a third party; the homeowner may have even instructed the contractor to work in a particular way and if it is a self build project then there could be deemed to be a master servant relationship between the home owner and the contractor and therefore there is an employer/employee relationship creating the need for Employers Liability cover, none of which would be covered by a household policy.
Building Contract
Where the works proposed are more significant the homeowner may employ the services of a team of professional advisors, possibly including an architect, structural engineer, quantity surveyor etc to oversee aspects of the development.
Such professionals may draw up a contract between the homeowner and contractor using a standard form of contract wording referred to as JCT (Joint Contracts Tribunal) contracts. These standard wordings will deal with all aspects of the building contract and the relationship between the contractor and homeowner detailing the respective party’s responsibilities. The contract may request a JCT Clause 21.2.1 or similar (JCT 6.5.1, 6.2.4,) Clauses. This requires an extension of the standard contract works cover and we can arrange this as an add on to some policies but also in isolation for the contractor, homeowner or in joint names if required. Howe Maxted have the skill and market awareness to be able to assist with policies of this nature for you.
Be mindful that should there be a contractual requirement to insure the existing property and works in progress in Joint Names the homeowner’s existing property insurer will no longer be able to pursue the contractor for the recovery of the costs associated with any damage they may have negligently caused. Therefore, many home Insurers can be extremely reluctant to maintain insurance which is in joint names. The answer is ideally to arrange a “Homeworks” policy which will insure the works and home under one policy for “All Risks” cover, which Howe Maxted have the skill and expertise to execute for you.
Structural Warranty
If you are building your own home or using the services of a number of specialist contractors for the construction of your home you will need a “Homeworks” policy but you may also need to arrange a 10 or 12 year structural defects policy. Again Howe Maxted have the skill and expertise to arrange such policies with access to a number of markets for you.
The structural defects policy will protect you as the homeowner, and future owners of your house if you sell within the ten year period of cover, against the cost of complete or partial rebuilding or rectifying work to the house as a result of defective design, workmanship or materials. In addition the policy can also provide similar cover for the drainage system and waterproof envelope within the house.
We have access to Structural Warranty policies that provide wider protection than an Architects Certificate and meets the requirements of lenders and solicitors who will often expect this cover to be in force.
The policy will runs from the date of the first legal completion or in Scotland the date of entry on the Premises.
The housing warranty insurance cover we provide meets the cost of re-instating the Premises in the event of a defect occurring in the structural parts. The Structural Parts includes the parts of the Premises, which are essential to the structural stability and waterproofing, such as walls, foundations, windows and roof.
In the event of a structural claim, we have policies available that can offer additional areas of cover, including:
- The costs of demolition to allow rebuilding;
- Design and other fees in connection with re-instatement;
- Costs of removing, storing and re-installing the contents of the property;
- Cost of providing alternative accommodation during the period of the re-instatement.
If in doubt please contact us for the appropriate professional advice.