This week we have had a few examples of different styles of property developments which in theory are very similar, but all have required different property developer’s insurance for certain reasons.
So, we have had 3 developers all doing works to an existing dwelling.
Property Developer A is demolishing the existing 2 storey commercial building that he has purchased to convert into a 3-storey residential unit consisting of 9 flats and is using a building contractor to carry out the works.
Property Developer B has purchased a residential building containing 4 flats and is adding an extension to the rear and refurb of the current flats. The works are being carried out by a building contractor they are employing.
Property Developer C has purchased a plot of land and is building 4 new build houses and is managing the build himself by bringing in bona-fide sub-contractors.
Property Developer A:What Insurances are needed?
The checks were carried out on this property and the only legal indemnity insurance that the client required was a Right of Light insurance as he was building above the height of the existing structure which he was taking down and is close to neighbouring properties. He also needed a building warranty insurance in place, so the surveyor was ready to come and view the site and any groundworks that had been carried out before the fill was done.
Even though the contractor had a Contractors all risk insurance, with this project as they were borrowing money the lender required the developer to take out a contingent contract works insurance.
Property Developer B: What Property Insurance was required?
No requirements on this build for any legal indemnity insurance, but what this developer will need is an Unoccupied Undergoing works Building insurance to cover the existing structure in case there is any subsidence or fire. He will also need to take out a contract works insurance to cover the contract for its entirety. In addition to the contract works insurance he will need a non-negligence insurance, due to groundworks for the extension and digging down next to a neighbouring property, so will need this to protect himself from any future claim.
Property Developer C:
Initially for this build the property developer will need site insurance to cover public liability. As it’s a new build the property developer will need a building warranty for each of the houses, but no non-negligence insurance this time as the site is 50 metres from any neighbouring property and there is minimal depth work.
For the build of all four house the developer will need a contract works policy to cover the length and cost of contract in his name with him as the builder.
As you can see all builds differ in what property developer insurance is needed. At construction insure we specialise in property developer’s insurance and are here to help you get the correct insurance and protect your investments.