The reason for this is quite simple. Projects in the field of urban renewal in general and National Outline Plan 38 projects in particular are considered by the insurance companies to be high-risk projects as far as Contractors All Risks policies are concerned.
Both in the case of National Outline Plan 38 1-3 projects
(Reinforcement of foundations and the addition of new apartments) or in the case of National Outline Plan 38-2 projects
(Demolishing old buildings and rebuilding in their place), there is a long list of risk that characterise contract works of this type which insurance companies consider very carefully. For this reason the insurance companies ensure that each and every clause contains exclusions, subjectivities and restrictive conditions in an attempt to reduce their exposure to the risk. In addition to this, numerous protection warranties are applied which are designed to reduce the probability of claims as far as possible. From the perspective of the residents, special attention needs to be paid to the insurance requirements and they need to be tailoring them to the nature of the project.