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Contract Works Insurance / Existing Structures |
Sven
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#1
15-August-2010
(time:
14:53)
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Posts:
8
Joined:
11-July-2009
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I seek clarification for the following scenario in regards to Contract Works Insurance for alterations to existing structures:
If a Contractor arranges Contract Works insurance with one insurer (A) and the Principal insures the existing structure with another (B) - I know that NZIA recommends that it should be ideally same insurer for compaitibility reasons- what would happen in terms of cover if i.e. a fire caused by a faulty electrical wire located in the existing structure (an event not caused by the Contract Works) damages part of the existing structure and the Contract Works (and visa versa)? Would the damage to the existing structure which is insured by insurer A be covered but the damage/loss to the Contract Works not?
Regards
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Sven Heger
Architectural Graduate
http://www.svenheger.com
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Barry Dacombe
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#2
19-August-2010
(time:
14:49)
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Moderator
Posts:
12
Joined:
15-June-2009
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Sven,
The answer to your question is that both insurers will want to fight over which insurer is liable for the claim. Basically that is why it is recommended that the same insurer covers both aspects of the insurance.
Things are never straight forward in insurance so leading you one way or the other will not be helpful.
The important thing here is that no matter what the cause the client (or contractor in joint names with the client) has appropriate insurance cover and can to some extent sit back and watch the insurers fight it out.
Our duty is to advise the client to hold appropriate insurance protection. We have accordingly done our job.
Barry Dacombe.
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Barry J Dacombe, Principal Barry J Dacombe Architect
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Sven
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#3
28-August-2010
(time:
13:09)
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Posts:
8
Joined:
11-July-2009
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Thanks for your response Barry. Much appreciated
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Sven Heger
Architectural Graduate
http://www.svenheger.com
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