What is Reform Defect Insurance? Peace of Mind with Coverage! Kakeru Koumuten Co., Ltd. Thoroughly Explains Features and Precautions!

For those considering home renovations,

“What should I do if defects are found in the construction?”

you may have such concerns.

What alleviates these worries is the “Renovation Defect Insurance.”

That said,

“What kind of insurance is it?”

“Who subscribes to it?”

such questions may arise.

In this article, we will explain in detail the features and points to note about Renovation Defect Insurance.

 

What is Renovation Defect Insurance?

Renovation Defect Insurance refers to insurance that covers repairs in the event that deficiencies or defects are found after the construction.

Some may think,

“It’s a hassle to subscribe to insurance in advance.”

However, this insurance is subscribed to by the contractor, so the client does not need to contact the insurance company or go through any procedures.

 

Benefits of Hiring Contractors with Renovation Defect Insurance

Currently, subscribing to Renovation Defect Insurance is not mandatory.

This means that it is an optional insurance for contractors.

Therefore, some contractors may not have this insurance.

Just because they are not subscribed does not mean they are 100% unreliable, but if you want to ensure peace of mind when requesting construction, it is recommended to hire a contractor that has subscribed to the insurance.

Now, let’s take a closer look at the reasons for this.

 

Checks by Third Parties

By hiring a contractor with Renovation Defect Insurance, you can receive checks from a qualified inspector during or after the construction.

While it is certainly possible to check the quality yourself after the work is completed, without specialized knowledge or experience, you may not be able to identify problem areas.

Inspectors will carefully check according to design and construction standards, making it easier to discover defects and deficiencies that may not be apparent to a layperson.

 

Prevention of Substandard Work

If there are no checks from third parties during or after the construction, contractors may cut corners freely.

Of course, reputable contractors will proceed with the work diligently, even without third-party checks, considering the client’s needs.

However, in the case of unscrupulous contractors, they may engage in substandard work or perform sloppy jobs to reduce labor costs.

If third-party checks are scheduled in advance, it can prevent substandard work and improve the quality of the construction.

 

Peace of Mind Even if the Renovation Company Goes Bankrupt

If defects or deficiencies are found after the completion of the work, and the contractor has gone bankrupt, you won’t be able to make inquiries or request a redo of the work.

In such a situation, you would have no choice but to

・“Suffer in silence”
・“Pay another contractor to redo the work”

However, if you had hired a contractor with Renovation Defect Insurance, you would be able to receive insurance benefits.

 

Points to Note About Renovation Defect Insurance

Next, let’s take a closer look at the points to note regarding Renovation Defect Insurance.

If you don’t keep in mind the information presented here, you may not be able to fully benefit from your insurance, so please make sure to check everything thoroughly until the end.

 

Relatively High Insurance Premiums

Renovation defect insurance has relatively high premiums.

The specific amount varies depending on the construction details, but the insurance premium typically ranges from 30,000 to 100,000 yen.

Many people may have questions about the burden of insurance premiums, but the cost-sharing ratio is often discussed between both parties, and

・The contractor covers the full amount
・The contractor and client split it evenly
・The client covers the full amount

These arrangements vary by contractor, so it is important to confirm in advance.

 

Short Warranty Period

The warranty period for renovation defect insurance is a maximum of 5 years, excluding special provisions.

What you should pay attention to is the point that it is “a maximum of 5 years“.

Depending on the construction details, the warranty period may be only 1 year.

If defects are found after the warranty period has expired, they will not be covered by the warranty, so be sure to check carefully.

 

What Construction Work is Covered?

Not all renovation work is covered by renovation defect insurance.

The work that is covered is defined as “only the work that is integrated with the residence“.

For example, renovations of kitchens, bathrooms, and roofs are included.

Parts that are not integrated with the residence are not covered, so please be cautious.

 

Conclusion

For those who are doing renovations for the first time or feel anxious about hiring a contractor, it is advisable to confirm in advance whether the contractor is enrolled in renovation defect insurance before consulting.

By doing so, you can receive a strict check from a third party, which helps prevent shoddy work and oversight of defects.

However, there are several points to be aware of regarding this insurance, so be sure to gather information in advance and equip yourself with knowledge.
Kakeru Koumuten Co., Ltd. is also enrolled in renovation defect insurance.
If you have any questions, please feel free to consult us!!

For exterior renovations, exterior wall painting, and roof renovations, trust Kakeru Koumuten Co., Ltd. in Aoba-ku, Yokohama!

Helpful information about exterior renovations can be found here!

We welcome inquiries via LINE as well◎

 

For roofing, guttering, and exterior work and repairs in Kanagawa, contact Kakerukoumuten Co., Ltd..

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!