The use of modular building is nothing new but it seems to be gathering momentum. Two major companies made announcements recently.
Redrow is trialling the use of modular garages at two of its regional divisions.
The house builder is also installing service pods to homes at its Paddock Wood development at West Drayton near Heathrow Airport.
McAvoy is targeting offsite housing with a 7-day build pledge for its foundations-to-finish modular system for all tenures. It claims an entire house can be assembled in a single day.
Does this have implications for your insurance? It could:
Physical damage – be aware that Contractors All Risks typically covers contract materials on or about the site, and in transit to and from. It will also, usually, cover off site storage of materials designated for a contract up to a pre-agreed limit. It does not though cover contract materials in the course of manufacture or assembly offsite. Separate material damage cover is needed to pick up this exposure.
Business interruption – many contractors don’t insure this risk, or have cover restricted to increased cost of working only; but where you are reliant on a single source of supply for materials there is a serious risk to your contract. Cover for gross revenue (or gross profit) will be needed.
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