Why site insurance is essential

The moment you become a landowner, you’re liable for what happens on your plot. Self-build Zone’s Paul Kempton explains how to protect your new property nce you’ve completed the you on a typical self builder’s journey. conveyancing and bought Assuming you intend to develop the your plot of land, no matter land, there’s likely to be a delay (which whether you’re ready to could be several weeks, months or build now or at some stage in the longer) whilst your scheme is drawn up future, you are legally responsible and full planning permission obtained. for the land. Technically, this means During this time, you will need to you’ve assumed liability for everything carefully consider the potential risks on it. The ‘it will never happen to me’ on the plot. Are there any derelict approach won’t be much help when buildings, walls or other structures problems occur, so it’s vital to ensure on the site? What about lakes, ponds, you’re protected from day one. dried-up wells or potentially diseased trees? All of these could present a liability risk if trespassers – particularly children – gain access to your land.

This is important even with buildings that have little or no value, including those you intend to demolish at some point. If someone was to be injured as a result of a structure’s derelict state, then as the landowner you may be liable to compensate them.

It might be that, whilst you wait for your planning consent to come through, you decide to start preparing the land to build on. Shrubs and trees may need to be cleared (being mindful of any tree preservation orders or other issues highlighted in the TA6 property information form you were presented during the sale process). You might also want to demolish any existing structures on the land using special plant and machinery.

If any of the above is the case, you will need more than a simple landowner’s liability policy, as this type of insurance typically excludes cover for work being carried out on a plot (let alone for protecting any equipment).

This is likely to be the point at which you need to consider purchasing a specific site insurance policy from a reputable provider that’s backed by A-rated insurers. This will offer protection for the works, as well as

OA common mistake

If you happen to live next door to your proposed building site, don’t assume that your current household insurance will cover you. If the plot is registered separately then it won’t be part of this policy. You therefore need to make sure that you genuinely have adequate insurance cover against any claims that might be brought against you.

Be thorough when checking this out: apart from the actual legal liability for accidents or other issues, you need to ensure the costs incurred in defending any actions are also covered. We live in an increasingly litigious world, and defending claims can be a lengthy and expensive process. Having a suitable, dedicated policy in place will mean you know you’re protected.

In most cases, the product you’ll need is known as a landowner’s liability policy. However, circumstances vary and it’s important you check that your exact requirements are covered. Be aware that these could well change over time, and you may need to adapt the product you’ve purchased or switch to a new, more appropriate policy.

Which insurance is best?

The best way to understand how your cover needs could change is to take covering your liability for anyone assisting on the project. It can also include any machinery, plant and equipment you purchase or hire in.

Protecting the build

Once construction is underway, site insurance will also cover your partiallybuilt home as it progresses – together with the materials, equipment, fixtures, fittings etc. But do remember that these policies are normally sold for time-limited periods (typically 12, 18 or 24 months). So it’s worth putting a reminder in your calendar to extend them if you’ve not completed the scheme within that timeframe. Providers such as Self-build Zone offer automatic alerts to advise you when your policy is about to end.

QUICK GUIDE Structural warranties

Structural warranties are a requirement for anyone using a lender to finance their project, or for those wishing to sell their property to someone using a mortgage in the next 10 years. But what do you really need to know about your warranty provider?

Firstly, always look at the insurer behind your structural warranty. Make sure they are A-rated, so you know you are covered for the 10 years. Secondly, you can save money if you arrange your warranty before you start, as surveys, inspections and remediations can be carried out and corrected as the build happens, not after you’ve completed. Lastly, even if you aren’t using a lender, a structural warranty gives you (and any future buyer) the peace of mind your project is protected for 10 years. This is one of the biggest investments you will make in your life, so it’s worth making sure its protected!