Joint Names Insurance
One of the most common questions that JCT Insurance Expert is asked about relates to Joint names insurance.
Joint names insurance is often a requirement for building contracts where renovations and extensions are being carried out to domestic properties. If you are carrying out a building project on your home and you are asked to obtain a Joint Names Insurance policy then you will need to arrange special cover.
A joint names policy is normally taken out by the property owner and the builder. Most standard building insurers will only put a policy in the name of the homeowner. In some cases, an insurer might note the interest of the builder on the policy, but this will not be sufficient to meet the requirements of a building contract that requires a joint names policy to be put in place.
Why choose Joint Names Insurance with JCT
JCT Insurance Expert can provide cover from a range of insurers which is underwritten on a joint names basis. A Joint Names policy will name both the homeowner and the builder as joint insured for the purposes of the policy cover.
The reason that most domestic building contracts require insurance to be in joint names is to protect the property owner. The cover will typically be for both the existing structure and the works as this will provide the ultimate protection for the homeowner. The benefit of a joint names contract to the property owner is that they have control of the insurance and will be notified if the cover is cancelled during the work.
A joint names policy also gives the homeowner the right to change the cover and make any claims under the policy that arise. Importantly with a joint named policy the homeowner is entitled to proceeds of a claim that is made under the cover, whereas if the works cover is in the contractors name only, the proceeds of the claim are paid to the builder – which is fine if you are still speaking to the builder after they have accidentally burnt your home down!
Having control of your cover and being entitled to the proceeds of the policy is also important if your builder ceases trading during the build – it is difficult to arrange cover on a half-built project and claims payments that are made to a builder in liquidation go to pay off his debts first, which might be his bankers and other creditors rather than you.
A joint names policy is particularly useful in the event that there is a dispute which arises during the works with the builder as the homeowner can transfer the joint names interest to a new contractor if necessary.
If you have any queries about how a joint names policy works or to arrange cover please call our friendly advisors on 01825 745 410.