The challenges that modern construction methods pose for insurance

Risk 1: Combustible materials

Modern methods of construction, such as timber frames instead of brick or concrete and high insulation foam sandwich panels, create a greater potential for elevated fire risks. With these methods, there is a greater chance of fire spreading quickly and extra attention should be made to avoid combustible materials in favour of less combustible alternatives.

The potential outcome of these modern methods is greater claims costs and inconvenience to your business. If you haven’t installed sufficient fire containing measures, fires are likely to cause greater damage.

Risk 3: Wear and tear

Some modern materials or construction methods don’t have the same durability over time as more traditional ones. Timber vs concrete is a prime example. This could create an increase in the frequency and extent of certain claims types such as structural damage or escape of water.

Risk 5: Eco-friendly isn’t necessarily insurance-friendly

We’ve seen some construction companies use ‘green’ or eco-friendly alternatives to traditional methods, such as grass on roofs and walls to help the buildings blend in to their surroundings. However, these alternatives bring with them their own unique risks.

For instance, the aforementioned grass roofs and walls can become fire hazards if not properly maintained. If they’re not watered on a regular basis, the grass can dry out and help the creation and spread of fire.