What if a contractor causes flooding damage?

Building contractors and/or plumbing contractors that may attend to work on buildings, be it repairs or improvements, could accidentally cause a water flooding event that damages the buildings and related permanent fixtures. 

When these incidents arise, it could lead to extensive repair costs to existing flooring, carpets, built-in cupboards/vanities, ceilings, cornices etc.

Who is responsible for contractor-caused damage?

Most insurance policies do not provide any cover for such damage to the buildings caused by contractors. It is generally accepted that contractors should carry their own contractors risk insurance cover that may respond to these losses. Many smaller contractors may not even elect to hold such insurance.

Will the insurance policy respond?

Some insurers, who do specialise in provision of cover for buildings, may include a limited amount of cover for sudden and unforeseen accidental damage caused by contractors, however, this extended cover benefit is not always available or included.

Should an insurer agree to settle and pay such a claim, they would then reserve their rights to recover the costs of such damage from the contractor.

Protect your property before work begins

It would always be most prudent that building owners check with any contractor to be engaged and enquire with them whether they do hold such contractors all risk (CAR) cover.