Construction Works Insurance
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Construction Works Insurance?
Construction Works Insurance is intended for building contractors and covers buildings or parts of buildings under construction. The insurance is designed to compensate for damage that may occur to the building during the construction period.
What Is Covered?
Damage caused by fire, soot fallout, lightning, or explosion
Water damage, such as sudden and unexpected leakage from plumbing, heating systems, or drainage pipes of the building
Damage due to collapse or subsidence
Damage caused by storms when wind speed exceeds 28.5 m/s
Loss due to burglary, theft, or vandalism at the construction site
Glass breakage — but only after installation
What Is Not Covered?
Fire damage that is not considered a conflagration (e.g., scorching) or damage caused by short circuits
Theft of valuables stored outdoors or in areas with easy access for unauthorized persons
Damage occurring during the use of explosives on-site
Scratches, chips, condensation between glass panes, damage due to expansion or poor maintenance of frames or fittings, glass damage from construction work or outdoor repairs, or damage resulting from breaking of glass
Consequential damage from any cause
Damage due to the use of incorrect or defective materials
Damage resulting from incorrect and/or incomplete design and/or calculations
Damage caused by registered motor vehicles
Are there any restrictions or precautionary rules?
The insured is required to comply with Vörður's precautionary rules.
The insured is required to properly maintain the insured items and follow the seller’s instructions and operating guidelines.
The insured is responsible for ensuring that all equipment and installations at the insured location comply fully with applicable laws and regulations at all times, as relevant.
Where is the insurance valid?
The insurance is valid only at the location specified in the insurance policy.
What are the insured's obligations?
Provide all necessary information, whether in connection with the renewal or modification of the insurance.
Report any damage at the earliest opportunity and no later than one year from the date of the incident.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts generally apply for 12 months from acceptance of the offer and issuance of the policy, with premiums based on an annual premium. If the insurance is not cancelled during this period, it is automatically renewed.
How is the insurance terminated?
The insurance may be cancelled at any time during the insurance period.