"From when does the insurance apply?" – a simple question that, in the CAR world, gets two dates in reply: the policy's inception date and the start of the period of cover. The two aren't always the same, and at the end of the project, the moment of handover draws the line. Anyone who knows these points avoids the "it hadn't started yet / it had already ended" disputes.
- The period of cover typically starts with the handover of the site or the start of works – as fixed in the policy.
- There is no retroactive cover: inception must happen before work starts.
- Cover typically ends at handover – for partial handovers, section by section.
- After handover, the maintenance extension can provide continuity.
The start: not the date, but the event
CAR wordings typically tie the start of the period of cover to an event: taking possession of the site, the first delivery of materials, or the actual start of work – as defined in the policy. The practical lesson: time the inception to match the start of work, not the signing of the contract. There's a routine for a sudden start too – see the inception and start of work article.
The end: handover
Cover typically ends at practical completion/handover, or at occupation, whichever happens first. That's logical: from that moment, the works are no longer "under construction" but an operating asset, and a different kind of protection applies. For partial handovers, cover typically ends section by section: the part of the building already handed over drops out of the CAR while work continues on the rest – in which case documenting the dividing line (in writing!) matters especially.
The grey zones
Three typical borderline cases cause dispute. Early occupation: the client moves into a wing before it has been handed over – this part typically drops out of cover, so it needs sorting out in advance. A break in work: during a longer stoppage (funding delay, waiting for a permit), the site being unattended is a separate risk, and the wording may restrict cover – it's worth notifying the stoppage. And delay: if the project runs past the policy's expiry, the extension needs requesting in good time – this is the routine covered in change notification.
What comes after handover
Handover isn't the end of the risks: the maintenance extension can provide cover for loss during maintenance call-backs and loss traceable to a construction defect, and property insurance should start on the finished works without a gap. The steps of that switch are set out in the after-handover article and the handover checklist.
A question tailored to your own project? Book a free 20-minute project consultation →
