Estate Living Magazine Design for living - Issue 42 June 2019 | страница 37

I N V E S T
Ensure that the sum insured or the contract value is correct, and
that it is the same as the signed contract. The policy should have
a limit on par with the total construction budget. Theoretically,
the payout would enable you to rebuild the same home using the
same materials and labour.
• Read through all the details of the contract and the insurance that
your builder carries before you get started. This way, you can fill
any coverage gaps with your own insurance policy. Ensure that
your builder has a liability policy, which will indemnify the builder
and workers in the event of damage or injury to other people or
property (third parties) as a result of the construction.
Make sure you understand what the policy doesn’t cover. For
example, some common exclusions with the contractor’s all risks
policy include: employee theft, earthquakes, weather and water
damage. Cover for faulty workmanship, faulty design, and errors
and omissions is more specifically insured under Design and
Construct Professional Indemnity policies. Chat to your broker
about the many extensions you can add.
• Ensure that the period of insurance is correct, and that SASRIA
cover is in place. SASRIA provides cover against special risks such
as civil commotion, public disorder, strikes, riots and terrorism.
The policy you purchase will also cover a specified time, so make
sure the coverage period is long enough for your needs.
Overall, getting insurance for building a new home doesn’t have to
be complicated. Make sure to give it some thought beforehand, and
consult with a broker or intermediary before you get too far along in the
process.
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Contact a broker with experience/knowledge of the product/
policy and understanding of the contract. An intermediary plays
a pivotal role in supporting clients by simplifying complex terms,
assessing and addressing risk, providing expert advice and
negotiating competitive pricing.
D E V E L O P
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Santam is an authorise financial service provider (licence number 3416)