Before appointing a builder for a renovation or extension in Cape Town, ask every contractor, including us, for the documents that show what cover applies to your project. Registration, a workmanship guarantee and insurance serve different purposes.
Start with your own insurer
Before building work starts, describe the proposed work, whether the property will be occupied and any period it may be open to the weather. Ask your insurer or broker to confirm in writing what your household policy covers during the works, what you must notify them about and whether extra cover is needed.
Check the contractor’s policy
A Contractors All Risks policy may cover contract works and related risks. The name alone does not tell you which existing structures, materials, tools or third-party claims are insured. Cover depends on the schedule, wording, endorsements, exclusions and excesses.
- Check the insured business name and current policy period.
- Confirm the type of work and your project’s value fall within cover.
- Ask about damage to the existing home as well as the new works.
- Check public liability limits and the applicable excess.
- Ask the broker to explain any conditions you or the contractor must meet.
What FN carries
FN Building Projects carries Contractors All Risks insurance with R2.5 million cover for contract works and R2 million public liability, as stated in our published company information. Ask for the current schedule and confirmation of suitability for your project before appointment. These limits do not mean every loss is covered.
Keep worker cover separate
Ask for a current COIDA Letter of Good Standing and check the business details and validity. It is a separate document from a Contractors All Risks or public liability policy.
Put responsibilities in the contract
Record who arranges each policy, who pays applicable excesses, how an incident is reported and who contacts the insurers. Insurance does not replace a clear scope, safe working arrangements or an agreed process for resolving a dispute.
Take our builder checklist to your next meeting, and read your rights when hiring a builder. Planning building work in Cape Town? See our building and renovation services, then book a free site visit and ask for our supporting documents.