Insurance for Demolition and Rebuilding Projects. Major projects should be handled by a major insurance agency.
Demolition and Rebuilding Projects, similar to National Outline Plan 38 projects
, are a complex area that demands specialism in the construction insurance industry and the ability to conduct an in-depth risk analysis of the working processes in the project.
In addition to the contract works risks, there is another aspect of these projects that deter insurance companies – the residents that have to be evicted from the existing building. Many such projects involve people from lower socio-economic classes (one example being a Demolition and Rebuilding Project in Ramat Elishav in Lod, a neighbourhood reputed for crime, drugs and gangs). In such cases, a professional insurance agency is the key to success in formulating a policy for Demolition and Rebuilding Projects with extensive cover at the lowest possible cost.
On the subject of evicting tenants from buildings – One of the risks in projects of this type is prolongation of the project, the resultant delay in handing-over the new apartments and the unexpected costs of rent for alternative accommodation until the project is completed.
In some cases the risk is uninsurable however it is always possible to find a solution to provide insurance cover for physical damage at the site.