Your mini guide to self-build insurance

These days it’s becoming more common for people to start their own self-build project rather than buy a property. With this new trend comes a lot of risk which is why it’s important to have the right insurance in place.

Self-build insurance can seem intimidating, which is why it’s always best to make sure you’ve spoken to a broker who knows what they’re talking about to make sure you have the right policy for your project.

To get you started we’ve put together a mini guide so that you can make sure your new project is protected from the start.

What is self-build insurance?

Self-build insurance, also referred to as new build insurance, protects you and the property you’re building during the construction work. It combines a variety of covers which you need to make sure that your project and the people working on it are protected.

Physical damage or loss is one of the main things you need to protect against.

Here’s a quick summary of what’s covered:

• The building will be covered for physical loss or damage which is caused by accidental damage, fire, storms, floods, theft or vandalism.
• Materials are essential to completing your self-build project so it’s important that you have the right protection in place for these. Self-build insurance protects your building materials against physical loss or damage which is caused by accidental damage, fire, storms, floods, theft or vandalism.
• Caravans and huts are a common way for people to live on site whilst building their dream home, but can be something people forget about when looking at insurance. Our self-build insurance policy will provide protection for any temporary buildings (that you or your workers are using or living in) against physical loss or damage which is caused by accidental damage, fire, storms, floods, theft or vandalism.
• Tools and equipment on your site can be vulnerable to theft, which is why you need to make sure you have the right insurance in place to cover the cost of replacing any that are stolen from site. If you have equipment that you’ve hired, you might be liable for any costs of anything happening to them while you have them which means you could end up paying for the hire and the replacement if you don’t have the right insurance. You can also choose to add cover for your employees’ tools, although the cover amount will often be less. If you’re not sure on the type of cover you need, we can guide you through the options and advise you on what will be best for your individual project.

My builder has insurance, why do I need it?

This is one of the most commons phrases we hear and unfortunately is completely untrue. Whilst it’s important to make sure that any builders working on your project have the right insurance, the fact remains that they are working on your project which makes you responsible for the activity and risk on your site. The builder may only have public liability insurance which means they are not covering the new works, and their policy would only cover them in the event they are negligent. Because of this you also need to have your own insurance in place.

Why do I need public liability?

Public liability insurance is designed to pay the legal costs and any compensation payments that you may be liable for if any of the following happens on your site:

• A person is injured or killed
• There is accidental loss or damage to third party property (for example this could be the neighbour’s house or their car)

Your builder and any other contractors you use should have their own insurance in place which will include public liability. However, you should not rely on this as you are responsible for the whole project which means you need your own public liability cover in place. Our self-build insurance policy can provide you with £2m public liability cover, with the option to increase to £5m if required.

When do I need to start my self-build insurance?

If you are building from scratch or have purchased a property/plot of land which you will be building on, then you should have your insurance in place from the exchange of contracts as you are responsible for anything that can happen as soon as you own the land.

What happens if I need to extend my self-build insurance policy?

It’s a known fact that self-build projects can run over for a variety of reasons which is why our self-build insurance policy will be fully flexible enough to be extended should your project be delayed. If you suspect that your project is going to need an extension you should get in touch with your broker who will easily arrange an extension. If you choose to take out a policy with us, a member of our team will contact you before your policy end date to check in on your project timeline.

How do I arrange my self-build insurance?

Arranging your new policy with Renovation Plan is simple. Click here to get a quote and a member of our team will be in touch to make sure you get the right policy. Alternatively, if you’d like to talk more about your project and insurance requirements you can get in touch with our team:

T: 01621 784 840

E: info@renovationplan.co.uk