Self-build insurance

Here’s why getting the right insurance from the start is critical

2022-09-01 - For more information visit www.selfbuildzone.com.

The moment you purchase a plot you are responsible for it and, more importantly, responsible for anyone getting hurt, whether visiting as a guest or trespassing. So, make sure you are protected with a public liability policy. When you’re ready to start your build you need to make sure you’re fully covered with an all-risk policy. This will protect your site from theft, fire, storm, anyone you bring on site and any existing structure and more. Your site insurance is unique to your build and covers the whole cost of the build, public liability and employers’ liability.

BUT MY BUILDER HAS INSURANCE

You may think your builder has insurance but often this isn’t enough to cover the whole build and includes exclusions for when they aren’t on site. If you end up needing to prove they are at fault, a claim can take years. Appropriate site insurance takes the stress of this away.

WHY A STRUCTURAL WARRANTY IS IMPORTANT

Many people build their homes fully intending to stay in them and then find themselves needing to move and unable to because they didn’t arrange a structural warranty. A structural warranty is an insurance policy that protects new works against defects in design, workmanship and materials for 10 years. More importantly it is a lender requirement in the UK, meaning if you wish to use a mortgage or need to sell the property to someone using a lender you will need to have one.

WHEN TO ARRANGE A WARRANTY

A structural warranty should always be arranged before you start (usually when you arrange your site insurance). This is because for a structural warranty to be issued on completion your project will need to have been signed off by an approved inspector for technical inspections required by the insurer. The first visit is often when foundations are excavated. If you do not arrange your warranty before you start, you will end up paying more as surveys will be retrospective.

HOW TO CHOOSE YOUR WARRANTY PROVIDER

You need to make sure your provider is ‘A’ Rated. A structural warranty isn’t the same as your average annual insurance policy. You need to be confident that your provider will still be running come the end of the 10 years, or your home could end up uninsured and in breach of mortgage conditions.