Construction claims are happening more often now due to hurricanes, acts of nature as well as many builders and developers filing bankruptcy. If you have put money down to build a new home, only to find that the developer has gone bankrupt or a storm has destroyed the development, you may be able to make a construction claim.
Insurance companies that handle these types of claims will look at several aspects of the construction site before issuing a policy. Most insurance companies will cover any claims made from storm damage, but this may not cover everything. The insurance company will look at the solvency of the developer, the area where the construction is taking place as well as the value of the property.
Some instances where you may have a legitimate claim and be able to get money from an insurance company or developer include:
If the Home was Hit by Lightening or Destroyed by a Storm
The developer will have to have construction insurance in order for such a calamity to be covered. If the developer or builder does have insurance, then they will be covered for the damage. You, however, will not be covered for any inconvenience that it will cost you to stay an extra amount of time in a rental or another home. There is new construction insurance that you can get that will enable you to get coverage in case of such an occurrence. They will then compensate you for your loss. This will include extra time that you have to stay at a rental and cannot be in your property. The compensation has to be backed up with receipts.
If the Developer Goes Out of Business
If the developer goes bankrupt and you have new construction insurance, you may be able to make a claim. If not, you will be behind the banks and suppliers in order to retrieve any money that you put down on the house. Chances are that you will not see any money if you do not have construction insurance.
If the House is Vandalized
This will work just the same as if the house was damaged in a storm. You will not be compensated unless you have specific coverage.
Many people today who are thinking of having a home built are looking towards construction coverage. This protects their interest in the property in case of damage or, in some cases, bankruptcy on behalf of the developer or builder. With the new housing market at the lowest point it has been in nearly 30 years, there has been an onslaught of new construction claims with those who insure new construction.
Archive for the ‘Construction Insurance’ Category
What to Expect When Filing a Construction Insurance Claim
posted under Construction Site, Inconvenience, Receipts | Comments (0)
Construction Insurance – the New Boom
Construction insurance has been rapidly increasing over the recent years and it has now become an absolute must in Ireland for both local companies and international contractors operating in the country. The main factors which motivate this popularity are the growing number of legal claims against construction contractors, the expanding range of covered risks, as well as the companies’ realizing that an insurance cover is much better than millions of nerves and pounds wasted in a legal suit.
While only several years ago Ireland was not a litigious country, this has started to change. Keystone Insurance, a leading insurance broker for Ireland’ construction industry, reports a dramatic increase of litigation in the sector. Construction defect claims have spread to all parts of the country, and have become easily accessible to practically anyone. Given this accessibility and the growing number of claims, most construction companies now prefer to play is safe and have insurance.
Insurance covers have likewise developed over time and can now be extended to practically all risks that can emerge on a construction site. As Keystone specialists point out, first time construction insurance quotes are arranged over a few hours, and the cover can be agreed over the phone. Companies can pay insurance policies in over ten equal installments.
As the need for construction insurance grows, insurers begin to offer new features and services, and accordingly customers become more and more demanding. It is often the case that Keystone clients have held construction insurance with the same broker or insurer for many years without checking the market to ensure that they are getting the best possible cover for their money. That is why Keystone Insurance offers a specialist service to contractors who wish to have their insurance needs fully met. The insurance team explores alternative insurers to ensure that customers eventually get what they need.
Keystone Insurance is a nationwide and independent insurance brokerage house offering specialist construction insurance solutions to the Irish construction industry. It arranges quotes for public liability and employer’s liability insurance, contractors all risks, personal accident, plant and machinery, contract bonds. The company also offers schemes for construction occupation, including traditional high risk occupations such as roofers, curtain wallers and scaffolders.
posted under Dramatic Increase, Insurance Broker, Insurance Quotes | Comments (0)
The Most Incredible Insurance Story Ever!
A lawyer in Charlotte, NC purchased a box of very rare and expensive cigars and insured them against fire among other things.
Within a month, having smoked his entire stockpile of these high quality cigars and without even paying the first months premium on the policy the lawyer filed a claim with the insurance company.
In his claim, the lawyer stated the cigars were lost “in a series of small fires.” The insurance company refused to pay, citing the obvious reason: that the man had smoked the cigars!!
Incredibly, the lawyer sued the insurance company….and won!
In delivering the ruling the judge agreed with the insurance company that the claim was frivolous. The judge stated nevertheless, that the lawyer held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be “unacceptable fire,” and was obligated to pay the claim.
Although the insurance company were amazed by this ruling they accepted the ruling and paid $15,000 to the lawyer for his loss of the rare cigars in the “fires.”
The reason they decided to settle at this stage was to minimize their legal costs which was likely to cost much more than the $15,000 settlement.
However this incredible story doesn’t end there. Obviously still reeling from the court judgement the insurance company decided to play the lawyer at his own game and reported the situation to the police who arrested him on 24 counts of ARSON!
Using the paperwork from his own insurance claim and testimony from the previous case against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000.00 fine!
About the Author:
This article was written by Anthony Woods who is a director of Keystone Insurance, Irelands leading supplier of Public Liability Insurance & Construction Insurance.
Keystone do not insure cigars but do have a sense of humour and felt this story was too good not to share!
posted under Fires, Lawyer, Quality Cigars | Comments (0)