What is Building Insurance?

Construction insurance is a type of property insurance. It was formally established by the People's Insurance Company of China in 1980, and mainly covers foreign projects. The insured object is civil engineering projects of various industrial, civil and public utilities. Coverage includes: (1) losses caused by certain natural disasters such as floods, lightning, storms, etc .; (2) losses caused by certain human causes, such as theft, negligence of workers and technicians, malicious acts, etc .; (3) Unexpected accidents, etc. The main purpose of building construction insurance is to ensure that the economic losses suffered by the relevant units or individuals during the implementation of the project plan can be timely and reasonably compensated, so that the project plan can be continuously and smoothly carried out. ^[1]

Construction Engineering Insurance

Construction insurance is a type of property insurance. It was formally established by the People's Insurance Company of China in 1980, and mainly covers foreign projects. The insured object is civil engineering projects of various industrial, civil and public utilities. Coverage includes: (1) losses caused by certain natural disasters such as floods, lightning, storms, etc .; (2) losses caused by certain human causes, such as theft, negligence of workers and technicians, malicious acts, etc .; (3) Unexpected accidents, etc. The main purpose of building construction insurance is to ensure that the economic losses suffered by the relevant units or individuals during the implementation of the project plan can be timely and reasonably compensated, so that the project plan can be continuously and smoothly carried out. ^[1]

Construction engineering insurance is a comprehensive insurance that gradually evolved on the basis of fire insurance, accident insurance and liability insurance with the development of modern industry and modern science and technology. Its main features are:

Building works

1. Natural events

Natural events covered by construction engineering insurance include earthquakes, tsunamis, thunder, hurricanes, typhoons, tornadoes, storms, torrential rains, floods, floods, frost, hail, subsidence, landslides, avalanches, volcanic eruptions and other irresistible manpower Destructive natural phenomenon.

The insurer is not liable for losses caused by:

(1) losses and costs caused by design errors;

(2) Natural wear, internal or potential defects, changes in the substance itself, spontaneous combustion, self-heating, oxidation, rust, leakage, rat bites, insect stings, changes in the atmosphere (climate or air temperature), changes in normal water levels, or other causes Losses and costs of the insured property itself;

(3) the loss of the insured property itself caused by defects in raw materials or poor technology, and the fees paid for replacement, repair or correction of these shortcomings;

(4) The loss of machinery or electrical equipment caused by non-external forces, or the failure of machinery, equipment, machinery or equipment for construction;

(5) the cost of maintenance or normal overhaul;

(6) Loss of archives, documents, account books, bills, cash, various securities, chart materials and packaging materials;

(7) The shortage found during the inventory;

(8) the loss of vehicles, ships and aircrafts that have a public transport driving license or have been covered by other insurance;

(9) Unless otherwise agreed, property losses belonging to the insured who existed or formed before the commencement of the insurance project within or around the construction site;

(10) Unless otherwise agreed, before the end of the insurance period of this insurance policy, the portion of the insured property that has been issued by the project owner with a certificate of acceptance or acceptance, or actually possessed or used or accepted.

1. The building works stipulated in the building construction contract, including permanent works, temporary works and materials on the construction site.

2. Construction machinery and equipment, including various construction machinery such as cranes, pile drivers, forklifts, bulldozers, automobiles; various equipment such as cement mixing equipment, temporary water supply and power supply equipment, transmission devices, scaffolding, etc. can be used Insured.

3. The original property and materials on the construction site, including the buildings or other properties of the project owner or contractor on the construction site, may be insured by the insurer due to the risk of loss due to accidents during construction.

4. Installation engineering project, ie

In practice, due to the different contracting methods of construction projects, the policyholders are also different. There are four main situations:

1. All contracting methods. The owner contracted the project to a certain construction unit, and the construction unit as the contractor (or main contractor) was responsible for all the engineering, design, supply, and construction, and finally delivered the completed building to all by key delivery. people. In this way, because the contractor bears the main risk responsibility of the project, the contractor is generally the insurer.

2. Partial contracting methods. The owner is responsible for designing and providing part of the building materials, the construction unit is responsible for construction and providing part of the building materials, and both parties bear part of the risk responsibility. At this time, the two parties can negotiate and recommend one party as the insurer and specify in the contract.

3. Sectional contracting. Everyone divides a project into several phases or parts, and outsources them separately. The contractors are independent of each other and there is no contractual relationship. At this time, in order to avoid

The owner of the project, that is, the last owner of the construction project.

The project contractor, that is, the construction unit responsible for the construction of the project, can be divided into the main contractor and the sub-contractor. The sub-contractor is the construction unit that contracts part of the project to the main contractor.

Technical consultant, that is, the unit or individual who supervises the execution of the engineering contract on behalf of the owner, the architect, designer, engineer and other professional consultants hired by the owner.

Other related parties, such as loan banks or creditors. When there are multiple insured persons, one party usually insures and pays

The insurance period of a construction project includes the entire process from start to completion, which is determined by the insured according to needs.

1. The start time of insurance liability

There are two cases for the insurance period of construction engineering insurance: the insurance project starts when the construction site starts or the materials and equipment used for the insurance project arrive at the construction site, whichever comes first.

2. Termination time of insurance liability

There are three cases for the termination of the insurance period of construction engineering insurance: the termination date specified in the insurance policy, when the construction project is handed over to the owner, and when the owner starts using it, the first three shall prevail.

3. Guarantee period

After the project is completed, there is usually a guarantee period. During the guarantee period, if the project quality is defective or even causes losses, the contractor shall be liable for compensation according to the construction contract. This is the warranty period liability. Whether the liability during the guarantee period is insured is determined by the insured, but the insured must be paid accordingly.

All insurance rates for construction projects

project	Rate range	Determine conditions	Remark
1. Residential building 2. Comprehensive building 3.Restaurants and hotels 4. Office building 5. Hospital and school building 6. Warehouses and general factory buildings	1.5 ~ 2.5	1. Areas without special catastrophe risks 2. The construction period is less than three years (excluding the warranty period) 3.Insured amount below USD20 million, deductible USD1500 ~ USD2500 Insured amount USD20 million ~ USD50 million, deductible USD2500 yuan ~ USD4000 yuan Insured USD 50 million or more, deductible USD 4000 to USD 8000 Extraordinary project USD 100 million or more, deductible USD 10,000 or more
the way	1.5 ~ 2.5 (common) 4 ~ 7 (high speed, high grade)	1. Deductible: General risk: USD2000 ~ USD5000 Special risk: USD50000 ~ USD80000 Yuan 2. Earthquake and tsunami risk compensation limit: 60% ~ 80% of total insurance amount	Note: The insured amount of this part of the project is usually relatively high, which can be adjusted appropriately according to different local conditions. If it is underwritten in the bidding section, the above deduction can be appropriately reduced by 20%.
Dock, dam	3.5 ~ 6
Tunnels, bridges, pipes	4 ~ 8
Airport (Integrated Project)	3 ~ 5.5

1. Composition of insurance rates for construction projects

(1) Materials and projects provided by the owner of the construction project, installation projects, site cleaning fees, existing buildings on the site, other property of the owner or contractor on the site, etc., are a total rate for the entire construction period Implement a one-time rate.

(2) Construction machinery, devices and equipment are at separate annual rates. If the warranty period is less than one year, premiums are calculated at short-term rates.

(3) Guarantee period rate, a one-time rate for the entire guarantee period.

(4) Third party liability insurance, a one-time rate for the entire construction period.

2. Basis for determining insurance rates for construction projects

(1) The size of insurance coverage is directly proportional to the insurance rate.

(2) The degree of danger of the project itself.

(3) Creditworthiness, management level and experience conditions of contractors and other engineering related parties.

(4) Records of the insurer's previous underwriting of similar projects.

(5) The level of the deductible of the project and the third party's liability and the compensation limit for special dangers. The level of the deductible is inversely proportional to the rate, and the compensation limit for third party liability and special danger is directly proportional to the rate.