Under-Construction Commercial Project Damaged by Heavy Rainfall: Real Estate Insurance Claim Story

Built on Solid Ground, How a Construction All Risk (CAR) Policy Saved a Commercial Project from Monsoon Losses

Real estate development is a race against time and the elements. A major commercial project in the city was nearing completion when an unexpected, high-intensity rainfall event caused structural damage to the basement levels and destroyed stored construction materials. For the developer, the financial impact threatened to halt the entire project. The safeguard, in this case, was a robust Construction All Risk (CAR) policy.

The event in short, what happened

• Heavy, prolonged rainfall led to flooding of the construction site’s basement area.
• Expensive machinery, reinforced steel, and electrical fittings sustained significant damage.
• Construction came to a complete standstill, with project deadlines at risk.
• The CAR policy was activated to cover the cost of restoration and debris removal.

How Share India Insurance Brokers managed the construction claim

1. Crisis coordination: We immediately activated the claims team to meet with the project manager and insurance surveyors on-site.
2. Site preservation: We provided clear instructions on how to secure the site to prevent further deterioration, which is a vital requirement in CAR policies.
3. Loss valuation: We worked closely with quantity surveyors to accurately value the damaged materials and the cost of the re-work required.
4. Schedule protection: By prioritizing the claim, we helped secure an interim payment, allowing the developer to re-order materials and bring in labor without waiting for the final settlement.
5. Risk management advisory: Post-claim, we audited the site's drainage plan and suggested improved weather-proofing protocols to prevent a recurrence.

Why Construction All Risk (CAR) insurance matters

• Covers the full contract value of the project against unforeseen accidents.
• Includes protection for materials on-site, machinery, and third-party liabilities.
• Protects the developer's equity and bank financing from being wiped out by a single event.

Final note Every developer builds for the future, but it takes insurance to secure that future against the unpredictability of the elements. Share India Insurance Brokers, protecting your architectural vision from the foundation up.