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Understanding JCT insurance

Depending on your property, you may benefit from JCT insurance. This would be an extension to your liability insurance and can be added as an optional extra under our Premier Plus level of cover.

JCT Insurance is known by many names, including Non-negligence insurance and 6.5.1 insurance, and would provide cover for loss or damage to neighbouring properties where negligence cannot be proven. For example, the adjacent property collapses or subsides as a result of your works and the contractor is not found to be negligent. As the property-owner, you could be sued for the cost of rectifying the damage – this can be very costly!

 What JCT insurance covers

JCT insurance would provide cover for damage to the neighbouring property where negligence cannot be proven. JCT insurance/Non-negligence Liability is an extension of the Public Liability section. The main difference is that Public Liability insurance requires a negligent act to have caused the damage, however, this cover extends to include damage caused where there are no negligent acts, i.e. major groundworks causing cracking to a neighbouring property. As a condition of our policy wording, we ask that all contractors have at least £2m Public Liability cover to make sure the right level of cover is in place should they be at fault for damage to your property or the neighbouring property.

The types of perils covered under the Non-negligence extension include subsidence, heave, collapse, vibrations or weakening/removal of support or the lowering of ground water upon carrying out the contract works.

Project types that need JCT insurance

Common examples of when JCT insurance/Non-Negligence insurance would be recommended would include properties that are semi-detached or terraced and undergoing major grounds works, or works on a party wall, such as basement, underpinning or piling etc. If a party wall award has been issued, you may find that this makes you financially liable for damage to the neighbouring property. Therefore, this would be a cover you may wish to consider.

Why is JCT Insurance so important?

If the contractor is not found to be at fault (i.e. damage that couldn’t be foreseen and that no one could be held liable for), you may be held responsible for the costs incurred to rectify the damage. Due to the nature of these situations the claims could potentially be very large. This type of insurance is required for the policyholder to be able to claim for non-negligent damage and must be taken out before the structural or ground works have started.

 JCT insurance options

JCT insurance is normally stipulated within your JCT contract. JCT stands for Joint Contractors Tribunal. It’s a type of contract often drawn up for specific one-off building projects and can be purchased directly from the JCT.

JCT contracts are designed to clarify all aspects of the project and avoid having disputes over who was at fault in the event of a problem. The details range from what security will be used, when the work will be carried out and most importantly for brokers, what type of insurance cover is required.

They also ensure the renovator is in the best possible position throughout their project as it helps provide peace of mind.

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How to get JCT insurance?

Joint names insurance can be included as an optional extra within our Premier Plus level of cover. A proposal form would be required, which would detail project specifics. When offering this cover, we normally offer a limit of indemnity between £1m and £2m. It is important to take into consideration the value of the properties surrounding you when selecting this amount. An excess of £2,500 would apply and the JCT insurance would provide an indemnity period of 12 months after the expiry or cancellation date, whichever is sooner.


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