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Everything you need to know about completion protection/completion insurance

Everything you need to know about Completion insurance/Completion insurance

If you're building or renovating your home, it's important to have the right coverage in place to avoid potential losses and concerns along the way. One insurance that can be of great help is completion protection, also known as completion insurance.

Completion protection is an insurance policy designed to protect you as a developer or property owner should something unforeseen happen during the construction process. It can cover costs for, for example, material damage, incorrect installation or if the contractor is unable to complete the work.

By having completion protection in place, you can feel safe and avoid being financially responsible for any loss or damage. It is important to understand what the insurance covers and what possible limitations there may be.

In this article we will explore everything you need to know about completion protection/completion insurance. We'll go over what it is, what benefits it offers, possible exemptions from the requirement and how to find the right insurance for your needs. Stay up to date and get all the important information to protect your construction process and investment.

A 3D model house and a document for completion protection

What is completion protection?

Completion protection is an insurance policy designed to protect both builders and property owners if something unforeseen happens during the construction process. It can cover costs such as material damage, incorrect installation or if the contractor is unable to complete the work.

It is important to have completion insurance in place to give you peace of mind and avoid being financially responsible for any loss or damage. It is important to understand what the insurance covers and what limitations there may be.


Why do you need completion protection?

Having completion protection is necessary to protect your investment and reduce the risk of financial loss during the construction process. Construction projects can be complex and there is always the possibility that something could go wrong. With completion protection, you can avoid getting into financial trouble in the event of damage, errors or if the contractor is unable to complete the work. It also gives you the peace of mind that you don't have to worry about potential losses or problems that may arise along the way.


Do you need completion protection?

According to the Completion Protection Act (SFS 2014:227), this protection is necessary when a trader carries out specific work on detached houses on behalf of a consumer. However, the protection does not apply to buildings that are not classified as one- or two-family houses.

Completion protection is required for detached houses in the following situations:

  • New construction

  • Extension, if deemed necessary

  • Notifiable measures, if protection is deemed necessary

New construction means that a completely new building is erected or that an existing building is moved to a new location. Extension refers to a change that results in increased volume of the building.

When constructing single-family houses that are not intended for permanent residence, the building committee can decide that the protection is not needed. As the developer, it is your responsibility to ensure that the completion cover is in place when needed, although it is often signed by the contractor. If several contractors are involved, a cover is required for each individual agreement.


Exemption from the requirement for completion protection

There are certain possibilities for exemptions from the requirement for completion protection according to the Act on Completion Protection. Here are some situations where the protection can be avoided:


  • If you build on your own, without a hired contractor, in many cases no completion protection is required. This applies especially to smaller construction projects where you manage the planning, work and supervision yourself.

  • Another possibility to avoid the requirement is if you only pay the construction contractor in arrears, when each part of the construction project is completed. This means that payment only takes place after you have reviewed and approved the work performed.



Benefits of completion protection

Completion protection offers several benefits for both builders and property owners. Here are some of the main benefits of having completion protection:

  • Financial protection: With completion protection, you can avoid paying the costs of any damages or errors that occur during the construction process. The insurance can cover costs for repair work, material damage and other related expenses.

  • Peace of mind and peace of mind: By having completion protection, you can relax and rest assured that you are protected against potential losses or problems that may arise during the construction process. It gives you a sense of security and peace of mind.

  • Risk reduction: Construction projects always involve a certain degree of risk. With completion protection, you can reduce the risk of financial losses and problems by transferring responsibility to the insurance company. This allows you to focus on completing your construction project without worrying about potential complications.


How does completion protection / completion protection work?

Completion protection works by providing financial compensation if there is damage, errors or if the contractor is unable to complete the work. The insurance usually covers the cost of repairs, material damage and other related expenses.


In order to receive insurance compensation, you usually have to report the damage or problem to the insurance company and follow their specific process for applying for compensation. Documentation, such as photographs or reports from independent inspectors, may be required to prove the extent and cause of the damage. The insurance company will then assess the application and decide whether you are entitled to compensation according to the terms of the insurance policy.


It is important to read and understand the terms of your completion insurance to know which situations and damages are covered and which are not. Each insurance company may have different terms and conditions, so make sure you are clear about what is included in your policy.


The difference between completion protection and building insurance for errors and defects

Completion protection and building insurance for errors and defects are two different types of insurance that can be relevant during the build+gg process. Here are the differences between these two types of insurance:

  • Completion cover: This type of insurance covers the costs of any damage, defects or if the contractor is unable to complete the work during the construction process. It provides financial protection and security for both builders and property owners.

  • Building Defects and Defects Insurance: This type of insurance covers the costs of any defects and defects discovered after the building has been completed. It provides protection against any construction defects, material defects or other problems that may arise after the building has been handed over to the owner.

It is important to have both types of insurance to be fully protected during the construction process and after the building is completed. Completion protection covers the potential problems that may arise during the construction process, while building defects and defects insurance covers any problems after the building has been completed.


What does completion protection cover?

Completion protection covers a range of different situations and damages that may occur during the construction process. Here are some examples of what the insurance can cover:

  • Damage to materials: If damage occurs to materials used during the construction process, the insurance may cover the costs of repairing or replacing these materials. It can include everything from concrete and wood to plumbing and electrical installations.

  • Incorrect installation: If there are errors or problems with the installation of various systems or components in the building, the insurance can cover the costs of correcting these errors. It can include everything from plumbing and electrical systems to ventilation and insulation.

  • Contractor's inability to complete the work: If the contractor is unable to complete the work for various reasons, such as bankruptcy or illness, the insurance may cover the costs of hiring another contractor to complete the work.

It is important to read and understand the terms of your completion insurance to know exactly what is covered and what limitations may apply.


Frequently asked questions about completion protection?

Here are some common questions people have about completion protection:


Is completion protection mandatory when carrying out construction?

Answer: Yes, according to the Completion Protection Act (SFS 2014:227), the protection is needed when a trader carries out certain works on detached houses on behalf of a consumer. The protection is therefore not needed for buildings that are not one- or two-family houses.


How much does completion protection cost?

Answer: The cost of completion protection can vary depending on various factors, such as the size of the construction project, scope of work and the insurance company's pricing.


It is important to contact the insurance company and get all your specific questions answered before purchasing completion insurance.


Best Completion Protection Companies

When it comes to finding the best completion protection companies, it can vary depending on your specific needs and preferences. Here are some companies that have a good reputation in the industry:

  • Garbo Försäkringar: Garbo Försäkringar is a reliable provider of completion protection. They offer tailor-made solutions for various construction projects and have a strong reputation for offering good coverage and support to their customers.

  • Trygg-Hansa: Trygg-Hansa is a well-established insurance company that offers a wide range of insurance services, including completion protection. They have a good reputation and offer competitive rates and comprehensive coverage.

  • Folksam: Folksam is an insurance company known for its reliability and customer-oriented solutions. They offer completion protection and can tailor insurance for different construction projects.

It is important to do your own research and compare different companies and their offerings to find the best option for you.


In conclusion

Completion protection is an important insurance policy for everyone involved in the construction process. It provides financial protection and security if something unforeseeable occurs during the construction project.


We offer a service that helps you secure exemptions from the requirement for completion protection according to the Act on Completion Protection. In some cases, you can avoid this requirement, and we will supply the necessary documents confirming your exemption.

To make an informed decision, contact different insurance companies, get quotes and ask for professional advice on what is best for your specific needs.


You know that we can also help with building permit drawings , construction drawings and energy calculations .



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