Consequential Loss Coverage When Owner Building
The question posed is a ‘little’ complex because insurance is always about the circumstances of an insurable event and then how insurance coverage wordings is interpreted and then evaluated. Insurance coverage wordings are required to be constructed in plain everyday language. However, often oversimplification of complex matters often creates conflicting or confusing outcomes.
Nonetheless, insurances presented by our firm are comprehensive cover, importantly specifically structured to meet owner builders needs and lifestyle. This is evident by the emphasis and preciseness of wordings, and the catch all security for our clients that this policy responds through either repairing an owner builders loss, or reinstating loss or compensating for loss. It’s the loss of our clients that’s covered.
Regarding consequential loss: this related to business or commercial insurances, and not residential construction, so this specific loss (as defined by Consequential Loss), is not an insurable result. But what is covered is an allowance for escalation in costs to repair or reinstate loss, including increased cost of materials or labour and skills to reinstate loss. Our insurances have inbuilt allocation of 15% of the sum insured value to compensate for this increased cost. This allowance is beyond special or extra delivery of materials or redesign or site preparation. This means in a repair or reinstatement situation and should there be increased costs to get you back on feet, you are covered with extra allowances and tolerances.