JCT Homeowners Contract and Insurers

[PeteTheSwede]

Hi all

 

I'm due to sign my contract with my main contractor in a few days, and the architect suggested the JCT Homeowners Contract.

 

I've just been told by a friend who has just completed a renovation that the insurers he spoke to to insure his house during construction recommended him against JCT contracts.

 

Does this resonate with anyone? Anyone know why this might be the case? Should we be using something other than the JCT contract?

 

Thanks in advance

 

Pete

[the_r_sole]

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Edited September 26, 2019 by the_r_sole

[PeteTheSwede]

I had a couple of conversations with insurers today. They aren't particularly useful, but it appears that some (but not all) of the JCT contracts allocate additional liability in some way on the homeowner, which means that that the insurer would need to cover it. They said it would mean your policy would be more expensive as a result. One insurer said, "if you use another contract, we don't need to see it, but if you use a JCT one then we do", which seems nuts since your own contract could say anything.

 

A bit more independent research seems to suggest the insurance position under some of the JCT contracts gives the option of holding certain insurance in joint names, 

https://corporate.jctltd.co.uk/joint-names-clauses-create-own-problems/ . I wonder if this has something to do with it.

 

The Home Owner version does not, it simply says that the Contractor needs All Risk insurance and Public Liability insurance, and that the home owner needs to inform their home insurer of the work. That seems fairly normal to me. Still pretty confused though.