What is JCT insurance?

Joint Contracts Tribunal or JCT insurance is also known as JCT Non-Negligence insurance, JCT homeowner contract insurance or JCT 6.5.1 insurance cover. It covers you against claims arising from damage or loss to neighbouring properties where no negligence can be proven.

Put simply, if damage occurs because of your works and neither you nor your contractor has done anything wrong, you as the property owner are protected from being sued for the cost of the repair.

For example, if the house next to yours collapses or subsides because of the works being carried out on your home and your contractor is not found to have made any mistakes, you are liable to pay for the damage – which can be expensive. That’s why it’s common for people to take out joint names JCT insurance.

What does JCT insurance cover?

JCT insurance is designed for those who may benefit from the protection of a contract when appointing consultants or contractors to carry out building work. It provides cover for damage to the neighbouring property where negligence cannot be proven and is an extension of Public Liability insurance.

While Public Liability covers events where an act of negligence has caused the damage, JCT insurance goes further and covers damage caused where there are no negligent acts. This could, for instance, involve major groundworks causing cracking in a neighbouring property.

As a condition of our policy wording, we also ask that all contractors have at least £2m Public Liability cover in case they are liable for a loss that falls under their Public Liability policy. If the neighbouring property has a rebuild value higher than £2m then the contractor will need to increase their cover.

What perils are included under JCT insurance cover?

The types of perils covered under JCT Non-Negligence insurance include the following upon carrying out the contract works:

• Subsidence
• Heave
• Collapse
• Vibrations
• Weakening/removal of support
• Lowering of groundwater

JCT Clause 6.5.1 insurance should be in place to cover expense, liability, loss or claims relating to incidences such as these. The extent of the risk covered in your policy will depend on the cover level you choose.

Do I need JCT insurance?

Whether you need JCT insurance will depend on your property type and the type of works you’re carrying out.

You may have signed a party wall agreement with a neighbour which requires you to have this insurance extension. Your contractor can advise you before your project starts if this is necessary, but always check with them if you’re unsure.

What projects need JCT insurance cover?

As a rule, the projects that need this type of cover include semi-detached or terraced properties undergoing major groundworks or works on a party wall, such as basement works, underpinning or piling.

If a party wall agreement is issued, this makes you financially liable for damage to the neighbouring property, so JCT Non-Negligence insurance is an important cover for you to consider.

JCT insurance options explained

If you are undergoing a more extensive, more complex renovation, our Premier Plus cover offers JCT ‘All Risks’ insurance. Meanwhile, our Premier and Standard covers are suited to medium and small-sized renovation projects.

JCT insurance is normally stipulated within your JCT contract. This is a type of contract that’s often drawn up for specific one-off building projects and you can buy it directly from the JCT.

JCT contracts are designed to clarify all aspects of the project and avoid potential disputes over who was at fault in the event of a problem. The details range from what security will be used, when the work will be carried out and – importantly for brokers – what type of JCT insurance cover is required.

Overall, having this protection in place provides peace of mind for all parties and ensures the renovator is in the best possible position throughout the project.

Why choose JCT insurance from Renovation Plan?

We have over 20 years of experience as renovation insurance brokers, which means we know a thing or two about JCT insurance options. Check out our reviews on Feefo to see how we’ve helped our customers on their renovation journeys.

To speak with our friendly team, send us an email at info@renovationplan.co.uk or call us on 01621 784840.