Hello! This is Kakeru Koumuten Co., Ltd.!
This time, I would like to explain about the [Renovation Defect Insurance]!
‘What is Renovation Defect Insurance?’
‘I want to renovate, but I’m afraid of encountering defective construction…’
I will explain the defect insurance to help alleviate such doubts and concerns!
目次
About Defect Insurance
Renovation defect insurance is an insurance system that combines ‘inspection’ and ‘guarantee’ during renovation. It is underwritten by insurance companies specializing in housing (Housing Defect Liability Insurance Corporations).
Renovation defect insurance connects three parties: the renovation company, the insurance company, and the user. To utilize defect insurance, it is necessary to request renovations from a contractor that is enrolled in the defect insurance program.
If you have concerns about defects or guarantees during construction, we recommend requesting the contractor to apply the renovation defect insurance.
When a renovation company undertakes renovation work and enrolls in the “Renovation Defect Insurance,” if defects are found, repair costs will be covered by the insurance payout.
Insurance Period
The period of defect insurance is 5 years for ‘structural parts such as foundations, pillars, walls, and beams’ and ‘parts that prevent rainwater intrusion such as roofs and windows,’ while other parts are covered for 1 year.
What is a defect?
A “defect” refers to a situation where the performance and quality promised at the time of the renovation contract are not secured as agreed.
To put it simply, when renovating a roof, waterproofing is necessary to prevent rain from entering the interior. If rain leaks from the roof immediately after the renovation, it can be judged as a defect.
Benefits of Renovation Defect Insurance
Here are the benefits of choosing a contractor that has renovation defect insurance!
High-quality renovations
To join defect insurance, contractors must pass strict screening criteria set by each insurance organization. Therefore, contractors with defect insurance are often highly skilled and have a wealth of construction experience, allowing clients to feel secure in their requests.
Third-party inspections
For homes that have applied for insurance, a third-party (specialized architect) inspection can be conducted after the renovation work is completed.
The inspection method is based on the “design and construction standards” for each checklist item. Since it is a third-party inspection, a fair assessment can be conducted!
Free repairs for defects
Defect insurance applies to all parts of the renovation, so there are no exclusions for defective areas, and as long as the specified conditions are met, you can be assured of compensation.
Peace of mind guarantee even if the renovation contractor goes bankrupt
If defects are found after the completion of the work and you inquire only to find that the renovation contractor has gone bankrupt, you can still claim the necessary repair costs from the insurance company.
Although rare, if the renovation contractor goes bankrupt during the work, you can also receive the necessary repair costs from the insurance company.
You won’t have to worry about being unable to claim from a company that has gone out of business.
Flow from Contracting Renovation Defect Insurance
If you wish to contract renovation defect insurance, be sure to apply to the contractor before the renovation starts.
The flow of the contract involves listening to the explanation of the necessary documents prepared by the renovation contractor and then signing and sealing them.
Basically, the contractor will send the contract documents to the insurance company. Since it takes time to organize and mail the documents, make sure to apply well in advance of the start of the work.
After the completion of the work, we will provide you with a copy of the document detailing the contents of the defect insurance.
If there are any defects after the completion of the renovation work, you can claim repair costs from the insurance company based on the warranty, so be sure to keep the warranty in a safe place.
Search for Registered Contractors
Contractors that are enrolled in the defect insurance can be found on their respective websites.
For example, at the Housing Guarantee Corporation, which we are enrolled in, you can check the registered contractors through ‘Business Search’ to find registered contractors.
You can narrow down your search by region, so if you want to carry out renovations with defect insurance, it might be a good idea to search on such websites.
About Coverage and Exclusions of Renovation Defect Insurance
Next, we will introduce the criteria for whether a residence is covered by defect insurance or excluded.
Residences Covered by Defect Insurance
Defect insurance generally applies to all residences. It does not change based on the age or structure of the building. The criterion is whether it is ‘equipment integrated with existing housing,’ and it applies to all equipment within the building.
However, in the case of multi-family dwellings, there are instances where it may be excluded, as outlined below.
| Multi-Family Dwellings |
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Additionally, there are instances where it may be excluded based on construction standards as outlined below.
| Construction Standards |
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Exclusions
A common case that is excluded from defect insurance is “external construction.”
If you wish to use defect insurance, it is advisable to separate the costs of external construction when requesting or receiving a quote, as this will make it easier to calculate the eligible amount in case of need.
Additionally, damage caused by residents or natural disasters such as earthquakes is also excluded. To avoid regrets later, we recommend carefully checking the eligibility conditions!
Cost of Renovation Defect Insurance
First, when using renovation defect insurance, you must pay the insurance premium to the contractor or insurance company in advance.
Moreover, in addition to the above insurance premium, payment for inspection fees will also be required, which may result in high total costs.
The following are approximate amounts to be paid.
- Kitchen replacement work (insurance payment limit of 1 million yen): about 30,000 yen
- Exterior wall renovation (insurance payment limit of 2 million yen): about 50,000 yen
The actual insurance premium will vary depending on the insurance payment limit and the floor area of the house, so it is necessary to estimate!
Since the cost of renovation defect insurance is generally borne entirely by the client (the person requesting the renovation), we recommend carefully considering whether it is worth paying the insurance premium before enrolling.
Conclusion
We have introduced renovation defect insurance; how did you find it?
Although not widely known, it is an insurance that can benefit those who are aware of it. To prepare for any unforeseen circumstances and avoid various troubles, choose a renovation contractor that offers renovation defect insurance.
Even without using renovation defect insurance, contractors that have defect insurance are often reputable, so you can confidently request their services.
Of course, as mentioned above,
Our company is also enrolled in the renovation defect insurance, so those considering construction can rest assured!
Estimates and inspections are, of course, free!
If you have any concerns regarding roofs, rain gutters, exterior walls, or exterior structures, please consult Kakeru Koumuten Co., Ltd.!
We carry out everything from temporary scaffolding work to roof construction and exterior painting completely in-house. We are confident that our costs, quality, and efficiency in exterior work surpass those of other companies!
We welcome competitive estimates with confidence!
We want you to feel, “I’m glad I asked!” We take every request seriously to ensure your satisfaction.
We look forward to your inquiries. Thank you very much.
Helpful information about exterior renovations can be found here!
・No need for temporary scaffolding for exterior wall cleaning construction plan!
・Summary of popular colors for exterior wall painting! We will introduce recommended color combinations!
・DIY painting plan! For those who want to try painting the roof and exterior walls themselves! We will only set up the scaffolding!
・About the costs of roof overlay｜Kakeru Koumuten’s roof construction plan!
・About the costs of exterior wall painting｜Kakeru Koumuten’s exterior wall painting plan!
・About the costs of leak repairs｜Kakeru Koumuten’s leak repair plan!
・About the costs of ridge cap replacement and surface plaster｜Kakeru Koumuten’s construction plan!
・Latest｜About subsidies and grants available for renovations, and reduction systems!
・What are the market prices for rain gutter repair and cleaning? Tips on timing, fire insurance, and choosing contractors too!!
・Renovation store in Yokohama, Kanagawa Prefecture | What is roof overlay (roof cover method)?
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AAA is a young company with an average age in the early 20s, but our technology is second to none.
One of our greatest strengths is that we can do all of our own scaffolding, roofing, and painting work. In this industry, where work is generally divided, we are able to provide a complete set of services, which saves time and effort in management and reduces costs. Above all, if there is any trouble, we will come to you right away!
We can confidently declare this. We are the youngest and most friendly renovator in Kanagawa!
