By Gerald Humphreys
The purpose of this insurance is to ensure that, as a client, you are satisfactorily protected if the builder, architect or their insurance company does not accept liability for building defects.
The Householder Defects Insurance, assurance ‘dommages-ouvrage’ seeks to remove all this uncertainty by placing an obligation on your insurer to meet the costs of remedying the defect and leaving it to them to fight the battle as to who is responsible.
It can cover both new build and major renovation works. Builders do not publicise it because it makes it easier for a claim to be brought against them and some insurance companies do not like it because it is often raises their risk.
The policy must be taken out before works commence and will provide the cover on the same basis as that of the builders’ insurance (see October issue of ‘Keeping in Touch’). This insurance is not cheap, costing on average 1.5% of the cost of the works.