CAR insurance provides all risks cover. This means that any sudden and unforeseen loss or damage occurring during the period of insurance to the property insured will be indemnified unless the loss or damage is due to the few exclusions indicated in the policy.

The several cases below are the example of loss that can be indemnified under CAR insurance :

1. Bad workmanship, lack of skill, negligence, and human error

During construction of a building, the formwork under the first floor was removed before the concrete had been given sufficient time to set and the second floor was then concreted. The first floor was unable to support the load and both floors collapsed.

2. Willful and malicious acts

Shortly before the weekend, a concrete floor surfacing was completed in a building under construction. The doorways giving access to the area were blocked by boards to prevent anybody from entering. On next morning, the workers arriving at the site got a nasty surprise. Somebody had intentionally trampled all over the floor, ruining the surface.

3. Fire, lightning, explosion

The large fire occurred in a power station during construction, is thought to have been caused by a carelessly discarded cigarette.

4. Burglary or theft

On a road building site, several crates with spare parts for construction machinery were transported from the central storage area to a distant store. When the crates were opened they were found to contain ... bricks ! 

5. Earthquake, subsidence, landslide, rockslide

Shortly after completion of the rough structure of a new store – part of a steel mill extension – the whole complex was shaken by an earthquake with magnitude 7.7 on the richter scale. Particularly serious damage was done to this junction point in the reinforced-concrete structure. 

6. Flood, inundation, rain, snow

The river bank where these prefabricated girders for the construction of a bridge were stored, had allegedly never been flooded. However, due to excessively heavy rain more than one third of the normal annual rainfall within 24 hours, the water level rose rapidly. A nearby dyke broke and water surged over the bank, washing much of it away. The result was that the girders tumbled down the slope and were rendered unusable.

7. Windstorm of any kind

The brick wall which had almost been completed, collapsed due to strong wind pressure and suction. The average wind speed was about 20 m/sec (force 9).

Source : Basic Engineering U/W Skill, Ir. Russel Effandy, AAAIK, 2002.