Methodological Proposal for the Development of Insurance Policies for Building Components
Abstract
:1. Introduction
2. Description of the Problem
3. State of the Art
4. Materials and Methods
4.1. Context
4.2. Types of Models Proposed for Service Life Prediction
4.3. Model Parameters
4.4. Calculation of the Insurance Premium
5. Results, Discussion, and Limitations of the Proposed Models
6. Conclusions
- In residential condominiums, the insurance can be issued by sharing risks within the households and resulting in a reduced premium for each household; it promotes more durable and sustainable building construction with higher quality and performance levels, since the insurance discourages inadequate options in materials and construction practices;
- Insurance companies schedule and perform the “examination”, when the claim is made, unlike what happens in most of housing. As they have no interest in delaying building maintenance, the insured units gain a renewed look, benefitting the image of the neighborhood and city at large;
- The insurance product developed in this fashion can be summarized as a service given to the clients, so its usefulness raises the global value of the building having coverage. This allows commercializing the insurance by real estate promotion, apart from the usual distribution channels (e.g., internet, banks, brokers, and agents).
- This product can also be especially interesting to specialized maintenance companies, since it allows for an additional degree of protection against the risk of early degradation of materials.
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
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Insurance Company | Insurance Type | Duration | Type of Building | Coverage |
---|---|---|---|---|
Evolution Insurance Group | Building Warranties & Latent Defects Insurance | 10 years | Residential and commercial | Partial or full reconstruction against construction defects or structural anomalies Repair of roofs, façades and windows |
BLP Insurance | BLPSECURE | 10 or 12 years | All types | Partial or full reconstruction against construction defects or structural anomalies |
BLPSECUREPLUS | 10 or 12 years | All types | All of the above plus replacement of non-structural elements within their expected service life | |
BLPASSET | 6, 10 or 12 years | All types | Partial or full reconstruction against construction defects | |
Local Authority Building Control (LABC) + MD Insurance Services Ltd | LABC New Home Warranty | 5 years after construction + 10 years = total coverage of 15 years | Social housing, Residentia, | Protection against insolvency of the contractor Protection against construction defects. |
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Macedo, M.; Brito, J.d.; Cruz, C.O.; Silva, A. Methodological Proposal for the Development of Insurance Policies for Building Components. CivilEng 2020, 1, 1-9. https://0-doi-org.brum.beds.ac.uk/10.3390/civileng1010001
Macedo M, Brito Jd, Cruz CO, Silva A. Methodological Proposal for the Development of Insurance Policies for Building Components. CivilEng. 2020; 1(1):1-9. https://0-doi-org.brum.beds.ac.uk/10.3390/civileng1010001
Chicago/Turabian StyleMacedo, Miguel, Jorge de Brito, Carlos Oliveira Cruz, and Ana Silva. 2020. "Methodological Proposal for the Development of Insurance Policies for Building Components" CivilEng 1, no. 1: 1-9. https://0-doi-org.brum.beds.ac.uk/10.3390/civileng1010001