What is Contractor Insurance?

Contracting Insurance is the type of insurance used for overseas contracting projects of contractors.

What Risks Does Contractor Insurance Cover?

The risk of non-fulfillment of the contract conditions by the public buyers and non-payment of the receivables arising from the contract
War, civil war, confiscation, expropriation, nationalization
Making payments in local currency instead of foreign currency or transfer ban
Failure to grant work permits to company managers and employees
Implementation of an embargo in the buyer’s country or cancellation of the license
Unjustly, arbitrarily changing or canceling the insured contract by the buyer
Failure by the buyer to fulfill an arbitrage decision in your favor
(e) failure of the buyer to fulfill his obligations in the contract subject to insurance, when it becomes impossible to continue the contract as a result of his refusal, or it becomes commercially unenforceable,
Building completion insurance is a type of insurance in which a relevant law entered into force on 16.03.2005 with the inability to complete constructions and the increase in grievances in urban transformation. Of course, building completion insurance is required not only in urban transformation projects, but also in construction works.

What is Building Completion Insurance?

Building completion insurance is a type of insurance created in order to prevent the buyer from suffering in prepaid housing sales and urban transformation projects. It entered into force on 16.03.2005 and provided assurance against the construction company’s failure to fulfill its responsibility for the completion of the building or urban transformation projects.

Is Building Completion Insurance Mandatory?

Building completion insurance has become mandatory for construction companies against the risk of building construction and projects being abandoned or not started at all. Thanks to building completion insurance, consumers who pay high prices to own a house can own a house even if the construction company goes bankrupt.

“What is home insurance?” You can learn more about home insurance by reading our article titled

Building Completion Insurance Advantages

Building completion insurance is an insurance that protects both flat owners and construction companies and provides great advantages. Let’s examine the advantages of building completion insurance together.
By taking out building completion insurance, you can insure yourself against arbitrary behavior of the construction company.
If the conditions written in the protocol are not followed in mass housing construction and urban transformation projects, the insurance company may make a contract with another construction company and ensure the completion of the construction.
In the event of the disappearance, escape, death or bankruptcy of the owner of the insurance company, the company, the insurance company that you have taken out the policy, all the losses of the consumers who buy the flat and prevent them from being in a difficult situation.
If construction companies do not fulfill their obligations, insurance companies may terminate the policy by notifying the Ministry of Customs and Trade. In addition, it eliminates the grievances of consumers by carrying out project audits; It also pays according to the general conditions and the maximum premium specified in the policy.

Contribution of Building Completion Insurance to the Investor

Building completion insurance ensures the continuity of the project by examining the situations against the consumer and the investor.
It ensures the financial security of individual investors and prevents possible risks.
Thanks to the building completion insurance, the insurance company closely monitors the financing models, risk situations and business plans in new construction projects and helps them in the management phase.

Contribution of Building Completion Insurance to the Construction Company

Building completion insurance provides inspection of the construction site. In addition, it contributes to the risk audit by evaluating the compatibility of the structure, which will be made financially, administratively and technically, to the project.
Thanks to the building completion insurance, the construction company has the opportunity to reach the guarantees without exhausting the bank loans and without getting a letter of guarantee.

Contribution of Building Completion Insurance to Economy

Building completion insurance also helps protect the country’s investments and assets by creating new resources.
Building completion insurance; It creates financial security for the construction company, the contractor and the consumer as well as the investors.

What is the Scope of Building Completion Insurance General Conditions?

In line with the building completion insurance general conditions, the coverage is as follows.

Bankruptcy of the construction company
If the seller is a real person, the heirs die on the condition that he rejects the inheritance or the construction is not completed within 12 months, except for the cases specified in articles A.3 and A.4.
In the event that the owner of the company escapes or dies, it compensates for all damages and eliminates the grievance.

Situations not covered by Building Completion Insurance

Areas that are within the scope of the project but will not be used as residences
Failure to complete the project due to natural disasters such as hail, flood, flood, landslide and lightning
The sale of the house is in violation of the contract rules and the notarization is not done
Problems arising from nuclear activities
Damages that may occur during uprising, revolution, rebellion and war damage the project
Damages caused by internal water, smoke, explosion, snow weight and vehicle crash during construction maintenance activities
Construction company acting against the rules
Decision of public institutions to stop the project

When does the Building Completion Insurance come into effect?

If the construction company does not fulfill its necessary responsibility within the scope of the building completion insurance, the policy becomes effective if this situation is notified to the Ministry. Building completion insurance covers the money (including legal interest) paid by the consumer to the construction company in line with the general conditions.

Required Documents for Building Completion Insurance

When you want to take out insurance under the general conditions of building completion insurance, there are some documents required from you.

Subject of insurance
Pre-paid for urban transformation, that is, buildings within the scope of timeshare or model sales
free structures
Information about the project
Company information (T.R. number, tax number)
The cost of the project
Project start and end dates
Project photos
Total residential gross area
Total workplace gross area
Plugin area
Common places gross area
Total construction area
Borrower or insured information
Project risk status
Documents Required from the Company
Trade Registry Gazette
tax plate
premise of sale contract
Signature Circulars
building permit
contractor contract
Work in progress/finished work table
Contracts of subcontractors
Activity documents of companies
Title deed
tax return
Balance sheet, trial balance and income statement
check report
“There is no SSI and cost debt.” paperwork

Building Completion Insurance Prices

Building completion insurance prices vary according to the additional guarantees you add to your policy, apart from the main guarantees. Because with additional guarantees, the insurance becomes more comprehensive and accordingly the building completion insurance fee increases. In addition, the premium you have to pay will vary according to the price policy of the companies that make building completion insurance. Therefore, it is not possible to say a clear figure about the cost of building completion insurance. If you wish, you can get more detailed information about prices by contacting your insurance company.