Why should my client arrange their own insurance, regardless of whether the contract conditions require them to?

There are several reasons why a homeowner should not rely on a contractor's insurance to pay a claim:

• There may be conditions in the contract between the homeowner and the contractor that specifically state that the homeowner has a responsibility to insure certain aspects of the risk.
• There may be no specific cover for the homeowner's property under the contractor's policy.
• The contractor may only be covered for damage to the homeowner's property caused by the contractor's negligence - this would leave the homeowner exposed to non-negligent damage such as storm, etc and would also mean that, in the event of a negligent claim, the homeowner would have to take legal action against the contractor (and his insurers) to recover his/her loss. This can, of course, be a lengthy process.
• Whilst it is recommended that homeowners check that a contractor has adequate Public Liability insurance, it could be that there is some condition or flaw in the policy cover or that the contractor has not given his insurers adequate or correct information about his business that may mean they can avoid paying a claim.
• Lastly and most importantly, your client’s home is a valuable asset and they should ensure that it is properly protected. We suggest that the only way they can guarantee that they are covered adequately is to arrange their own policy.