What Insurance Do You Need for a Self-build?
Building your own home is a lifelong dream for many people. If you are seriously considering self-building your own home, then it can be helpful to consider the various types of insurance you may need to put in place to complete the process before you begin your journey. In this post, we’ll consider 3 important areas of insurance you’ll need to consider when building your own home.
One of the first things you will want to sort out before embarking on your self-build project is Site Insurance. Site insurance often combines different types of cover such as Public Liability, Employer’s Liability and Contract Works cover to ensure that your site, materials and the people working on the site are fully protected throughout the duration of the build.
If you think about it, from the day you begin working on your self-build there will be a potential for accidents, damage or even theft to occur. Building sites are dangerous places, both for the people working on them and for members of the public. If an accident were to occur, there is a potential for you to be found liable for this. This is why it is so important to have adequate public and employer’s liability cover in place to protect you in this event.
You will also be storing expensive materials on your site and operating and storing expensive machinery. These materials and equipment need to be covered against potential theft or damage. Contract works cover will also protect you if your building itself were to sustain serious damage during construction, such as burning down, for example. Site insurance – which often includes contract works cover – would reimburse you with the money you need to get your build back on track should serious damage to the property occur.
In addition to the main types of cover included in a specific self-build insurance policy which we’ve mentioned above, many providers of this type of insurance will also offer additional cover options for an additional fee. These might include cover for your temporary accommodation while you are carrying out the works – such as a temporary caravan. You may also want to pay a little extra for legal cover to protect against unexpected legal costs, as these can easily become costly.
Structural Defects Insurance
Another type of insurance that is essential for self-build properties is Structural Defects Insurance. If a building is under 10 years old, then – in the UK – Structural Defects Insurance is a mandatory requirement and it must be in place before a mortgage lender will release funds for a property purchase. This type of insurance covers developments – including self-builds – for 10 years against building and latent defects in design, workmanship, material and components. Structural Defects Insurance can be arranged to come into effect on the day you complete your self-build, so that the building can be covered from day one.
Research from the Start
While embarking on a self-build can be rewarding and fulfilling, it’s clear to see that it is vital that you research self-building thoroughly before you start a project or even purchase land. This is especially true when it comes to researching the right insurance policies for your self-build project, to protect you against potential problems and to help sell your build or get a mortgage approval upon completion.