Before construction begins, discuss who will insure the work, which project components are included and what conditions apply. The name CAR alone does not prove complete coverage.
What does CAR mean?
CAR stands for Construction All Risk and is intended for material damage during construction or assembly work. The selected policy and categories determine what is actually insured. There are, among other things, continuous policies for multiple projects and project policies for one job. Always ask for the applicable conditions; the words “all risk” do not mean that every event or expense is paid for without exception.
Do I need construction all risks insurance (CAR)?
Before starting, have an insurance advisor assess which construction risks your existing insurance covers and which additional coverage is appropriate. In addition, check whether your agreement, client or financier imposes insurance requirements. The required coverage is not a result of the extent of a renovation alone. In the event of a breakthrough, foundation work or open roof, the damage issues may be different. Submit the concrete work and any own work to the advisor.
The contractor says he is insured
Ask for a current confirmation that relates to your work. Discuss project address, work, duration, construction price, insured parties, deductible and relevant exclusions. Ask specifically about existing properties and the work included in your plan. Record who reports changes and extensions. A general policy number helps with inquiries, but does not make it clear whether all project circumstances have been included.
Which damage questions do you discuss?
Create a project-oriented questionnaire: what happens in the event of damage to the new work, the existing home, stored materials or surrounding property? What role do design or implementation errors play? Are temporary constructions and the after phase delivery relevant within the chosen coverage? Have the insurer or advisor link the answer to the actual policy. Do not fill in missing answers with a sample policy from another construction company.
Compare CAR, liability and buildings insurance
These insurances have different functions and conditions. Do not assume that an existing building or liability insurance policy will automatically cover all construction damage. Submit the proposed work to the relevant insurers and ask how the coverage fits together. The structural engineer provides the technical design within his assignment; that is not proof that the work is insured on behalf of the client or contractor.
Checklist before start and in case of changes
Establish a single point of contact for insurance and damage. Save the confirmation, conditions, contact details and agreements about the deductible with the agreement. Report relevant changes such as additional work, a longer construction period or a changed executive party via the agreed channel. Ask how damage should be reported and recorded. After delivery, confirm which coverage will continue and what may need to be adjusted. This page is a preparation aid; Policy advice comes from your insurance advisor.
Your preparation in four steps
- Have your specific construction risks assessed
- Request written confirmation for this project
- Determine coverage, deductible and term
- Report changes before execution
Frequently asked questions on this topic
Does a CAR policy prove that everything is covered?
No. The insured activities, categories, amounts, duration and exclusions are decisive.
Who takes out the insurance?
This is agreed between the parties involved and coordinated with the advisor. Record who is the policyholder and who is co-insured.
Is CAR the same as liability?
No. Discuss the functions and connections of the relevant policies with the advisor; do not assume complete overlap.
View the associated structural calculation, create your preparation list or take the guides and checklists along to the consultation.
Questions for the insurance advisor
| Subject | Have it confirmed in writing |
|---|---|
| Project | Which address and which activities are covered by the policy? |
| Parties | Which client, contractors and other parties are included? |
| Existing construction | How is damage to the existing home treated? |
| Coverage | Which categories, exclusions and amounts apply? |
| Planning | What are the beginning, end and agreements for an extension? |
| Own risk | What amount applies and who pays it according to the agreement? |
| Damage | Who reports damage and which documents are needed? |
View all constructions and construction guides · All types of structural calculations
Sources and further checking
More information: Centraal Beheer: CAR, policy types and coverage.