JCT 6.5.1 Insurance

JCT Clause 6.5.1 Insurance (often referred to as Non-Negligent Damage Insurance) is a specialist policy required under certain building contracts. It protects the employer (project owner) against damage to adjacent or surrounding third-party property caused by the contractor’s works – even if no negligence is found.

It’s typically required when construction work is taking place near existing buildings or infrastructure that could be unintentionally damaged by vibration, excavation, piling or ground movement.

What Does JCT 6.5.1 Insurance Cover?

The policy provides cover for the following instances.

Damage to neighbouring properties caused by:

  • Collapse

  • Subsidence

  • Vibration

  • Weakening or removal of support

  • Lowering of groundwater levels

  • Legal defence costs associated with such claims

  • Compensation awarded to third parties

  • Costs of demolition and rebuilding if required

Importantly, it applies even if the contractor is not at fault – which is why it's called non-negligent damage cover.

Why Is JCT 6.5.1 Insurance Important?

  • Protects both the employer and contractor from costly third-party claims

  • Provides peace of mind to neighbours and local authorities

  • Often a legal or planning requirement on sensitive or high-risk developments

  • Fulfils the insurance requirements under many JCT contracts

What a Claim Might Look Like

1. Subsidence in Adjacent Property

Scenario:
Excavation for a basement extension causes ground movement, leading to cracks in a neighbouring property’s foundation – even though all work followed regulations.
Outcome:
JCT 6.5.1 Insurance covers the repair costs and any legal liability to the neighbour.

2. Cracking from Vibration

Scenario:
Piling work on-site causes vibration that cracks internal plaster and tiling in a nearby house.
Outcome:
The insurer pays for investigation, repairs and any compensation – despite no wrongdoing by the contractor.

3. Collapse of Boundary Wall

Scenario:
Excavation near a property line weakens the ground, causing a shared boundary wall to partially collapse.

Outcome:
The JCT 6.5.1 policy pays for the cost to rebuild the wall and restore adjacent landscaping.

4. Water Table Disruption

Scenario:
Groundwater displacement during basement works causes minor flooding in a nearby building’s cellar.
Outcome:
The policy responds to cover damage and remedial work, even though no fault is found in how the works were conducted.

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