“The insurance will sort it out…”


“The insurance will sort it out”

Six words that you never want to hear. Something has gone wrong and it’s going to be expensive to fix. Everyone looks to the insurance companies.

What could go wrong?

On any job there will be a range of insurance policies to cover loss. The contractor has insurance to protect himself,  the supplier may have his own, the professional may have PII ( professional indemnity insurance).

The problem is that each party has insurance to protect HIMSELF. The owner/ client does not generally have a policy on the project.

So any loss, be it pyrite, an act of God, bad design or poor workmanship, can be very slow to resolve. Where there are multiple insurance companies a complex issues can take years and legal action to pay out.

Read the small print. The professional is there to advise that the right insurances are in place so that the owner is not left to bear the loss.

Here are a links to older press pieces from two years ago noting the reaction by some parts of the insurance industry to pyrite claims as they happened:


Pyrite: There are ‘legal and moral responsibilities’

What is the cost of repairing pyrite-damaged homes?

Over 10,000 homes could harbour unidentified pyrite problems


Read: Pyrite bill to be introduced next week 

Column: ‘We’re watching our first house crumble before our eyes’

HomeBond ‘snub’ over pyrite ‘a matter of serious public concern’ – Committee







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