Self-build insurance: All you need to know
You’ve finally secured your plot of land and you’re ready to dive into laying the foundations for your self-build home. There’s plenty to think about and plan for. From the budget, cost of materials to the design and build.
Wait! Before you start the building process you must ensure you’re covered by self-build insurance in case anything goes wrong on your building site.
Self-build insurance covers you as the employer of the project, your workers, your land, your materials, and any damage to the home you’re building. You will need this insurance while your home is under construction and this policy can be extended if your project overruns.
What do you need?
Site insurance should be in place from the moment you exchange contracts on the plot or property you are about to start work on. This covers the works in progress and the below:
Public Liability insurance – this covers legal liability for claims made by any other person or body in respect of death, injury or loss arising from your building operations.
Employer's Liability insurance - this is a legal requirement if you are employing anyone. This can also be a factor if any sub-contractor working for you has an accident on site where your duty to provide a safe working site could be called into question.
Contracts Works insurance - protects against losses through theft, vandalism, structural damage, fire, flood, storm damage, damage by delivery vehicles, etc.
Other optional cover includes legal expenses, which can help to pay the cost of any contract disputes which may arise when building your own home or the removal of squatters from site during the insured period.
It’s not something you particularly want to think about but it’s important for a self-builder to consider that in the event of their death, or incapacity, the project can be finished. Arranging additional life and/or injury cover for themselves and/or their beneficiaries is worth considering. Personal accident protection would pay a lump sum if you’re injured during building works.
Other insurance - you may also require special additional cover on occasions when any specialist services are being provided on site by third parties.
Don’t rely solely on your builder’s insurance
If you carry out a project by using a builder you must always check they have insurance and that it’s valid and offers sufficient cover – don’t just assume they have a policy. It could be a costly assumption. However, during the process of self-building it’s likely that you may build your own materials such as kitchen units, for example. If any of those items are stolen or damaged, because they were not purchased by your builder, means you cannot claim for them. Getting your own insurance policy is a must. Again, if you use subcontractors do not rely on their insurance only. You are technically considered to be the main contractor and deemed to be employing all of the people working on the site.
You may have cover but you’ll still need to keep the site safe and secure to make sure any theft, damage or vandalism claims you make will be covered so read your policy very carefully to make sure you meet the requirements.
The end in sight
It’s not over once you’ve finished your build. Make sure you obtain buildings insurance policy as soon as it is complete. Standard construction buildings can be covered by a standard home insurance policy – but it has to be signed off by a builder with the correct planning permission attached. Non-standard construction self-builds (those with a flat roof, for example) will need a non-standard home insurance policy to ensure proper coverage.
How much will it cost?
Self-build insurance costs vary according to each project but it is worth visiting comparison websites to get a rough idea of costs. There are dedicated self-build insurance providers so search for them when it comes to choosing a policy provider. When choosing a policy, check very carefully who is and who is not covered by each insurance company. If you are in any doubt, obtain written clarification from the policy provider.