I am going to renovate my property and my contractor is asking me to purchase Contractors' All Risks insurance.

I am a bit puzzled. For me to carry out my own business, I purchase my own Professional Indemnity, Commercial General Liabilitity and Employer Liability insurances. I won't ask my client to pay for these insurances.

For home renovation, is it a norm to get the client to purchase the Contractors' All Risks insurance?

Not entirely familiar with this but is he saying he's going to bail on you and you gotta fight for your own compensation?

Which contractor/company is this?

The contractor is not in this forum.

I have asked for several quotations before deciding. My oversight on this. For my previous renovation, I did not receive such a request. Maybe my current project is a bigger project.

U tell him this, Under the PAM Contract 2018, Clause 20.A.1, without prejudice, you are to indemnify me under Clause 18.0.
It is also a precedent under any Works that YOU are to take out and maintain the insurance under a joint names of Me, You and Your Sub-Contractors.
Insurance value to be not less than Construction Cost.

The insurance must be valid up until expected completion date and Defect Liability date with additional 3 months.

If You (the Client) are to apply for the Contractor, this shall be deducted from the Construction cost. If contractor quote RM200000, insurance cost to deduct from that, unless he applied for it

Doesn't hurt to share if you don't mind so we can all avoid such contractors in the future as this, to me is a clear red flag...

No lah, they are nice guy and straight-forward. In term of the price, I also believe they are reasonable. Just curious if this insurance is a norm. Thanks

Just curious how big and nature of this renovation that requires this insurance? Unless your renovation has high environmental impact, high $$$ and/or high third party risk, normal renovations won't require such.

The property is 2.5 storeys with a build-up of 4245 sqft.

I suspect split levels and 45 degree slope (about 7m tall) behind the kitchen could be the risk factors.

They should buy not you.
Tell them it doesn't make sense as if you buy, anything goes wrong the compensation goes to you not them...

Contractors' All Risks insurance?
so far... many renovation done.... never encounter this kind of thing...
maybe because amount small sum of 80k??

Ya, my previous renovation around 50k, the contractors also did not ask me to buy.

I checked with my architect, who is a lowyat member, and he also told me it is contractor's responsibility to buy. But, my insurance agent told me that the requirement depends on the terms and conditions of the contract. I read the contract and there is no clause.

I suggest to nego back...
if still stubborn... u better find another person @ contractor to do your renovation...

No lah, I already signed the contract. Furthermore, the price for iron/steel has gone up. I locked the price already.

oohh...
then No choice already... just follow what he said lorh...
since u says already sign contract & lock up the price...

Probably gather a few support points and go back to twist their arms like what minum susu suggested.

true.
better "fight" with some valid points...
many contractors lack of jobs... or getting smaller scale jobs/project... people not spending big on renovations...

Actually, for good contractors, I believe they are still occuppied as there are quite a number of renovations going on at the street my property located. In fact, three others projects.

Nevertheless, I thought the insurance is very expensive. I was surprised by the quotation from AXA. Even workmanship can be insured. The amount is less than RM500 including tax. Need to talk to the contractor.

Not bad..
Didn't know even workmanship can be insured 👍

No. The contractor responsibilities to get the insurance, you are the principal (client) and this insurance covers you should the contractor do not finish their job, public liability, removal of debris etc ftrri. The contractor will usually get Workman Compensation cover together with CAR.

this sounds like a fair arrangement.