ABSTRACT
For a very large percentage of construction projects there will be in place a project insurance policy gathering under one policy the property interests of a number of participants to the project. This chapter deals more with the types and content of property damage policies. The policy should define the 'insured property'. The cover provided is in respect of 'loss of or damage to the Insured Property'. All risks policies usually contain an exclusion in respect of damage caused by 'wear, tear or gradual deterioration'. Accordingly damage to a lower lavatory on the ground floor by the see page of water from an underground water course was not damage by flood. The Joint Contracts Tribunal (JCT) forms define 'specified perils' and these include 'fire, lightning, explosion, storm, flood, escape of water from any water tank, apparatus or pipes, earthquake, aircraft and other aerial devices or articles dropped therefrom, riot and civil commotion'.
