The term “Insurance for reinforcing buildings against earthquake” is usually associated with National Outline Plan 38 projects due to the primary aim of such projects – reinforcing the building against earthquake. However, it’s important to understand that not only residential buildings need to be reinforced against earthquake. Certain public buildings, buildings subject to preservation orders and historical sites also need to be reinforced against earthquake.
Regular buildings insurance usually includes cover for earthquake however Contractors All Risks insurance
also covers Third Party Liability and Employers Liability and when the works are completed it is also possible to arrange Products Liability insurance
for completed operations. However, arranging Contractors All Risks insurance for reinforcement projects is quite a difficult task.
Projects to reinforce buildings against earthquake are viewed by insurance companies as high risk and hence the “standard” Contractors All Risks policy does not provide full cover for reinforcement works, other than if an in-depth analysis of the customer’s needs has been made to formulate an adequately tailored insurance policy.
Furthermore, due to the severity of the risks, insurance companies are also not very keen to provide cover at all for reinforcing buildings against earthquake.
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