Not the most exciting of subjects I know but you may well come across this at the beginning of your build and not be aware of the impact on your self build insurance.
Some builders or even architects may want you to sign a document which effectively adds the contractor as a joint insured to your insurance policy much the same as a wife/husband etc would be. You have no legal obligation to sign the document nor is there any issue with the contractor asking you to sign it however it does impact on your insurances should you do so.
By adding the contractor as a joint insured effectively you waive the insurers right to subrogate a claim. So for example you have the contractor working on site doing some plumbing which involves some hot work/soldering. The contractor leaves for the night however the area is still hot and ignites some timber stored in the property. Subsequently the property catches light and the property burns to the ground (a total loss claim). Ordinarily your insurer will look to claims its losses back from the 3rd party, in this case the contractor, however because you signed JCT clause 5.4B the contractor is treated as a policyholder and insurer cannot claim those losses back.
Now this isn’t to say that you shouldn’t sign the clause. However you must make you insurer aware as it is likely to effect the premium you pay for the policy. Failure to do may result in your insurer declining your claim as it is a material fact and the insurer will not have collected the correct premium for the increased risk.
ProAktive are experts in their field and have provided selfbuild insurance for over 30 years. If you would like any further advice regarding our blog or would like a quotation you can contact us on 01302 346831 or complete a quotation online at www.selfbuildonline.co.uk