Property Developers Check List

At Construction Insure we want to make sure that as a developer you have thought of everything when it comes to protecting your new build.

The aim of our site is to help you and make everything as straightforward as possible when it comes to understanding all of these different insurance policies you could potentially need and how we can help you acquire them at the best cost and with the best cover.

  • If you are buying a new property then, first of all there are checks to be done before you exchange on the property. There could be restrictive covenants in place which need to be dealt with and insurance to be acquired if you want to safeguard against these covenants. Then there is absence of easements to look out for and insure against if needed.
  • You now have the Building, you have recently purchased this and it is going to be your investment over the next period whether you decide to develop and sell or develop and rent. So you need to take out property owners insurance for an unoccupied property, this is if it is unoccupied.
  • To insure the property properly we will need to know specifics about what you are doing with it, ie how long unoccupied, what works are you are carrying out and if there are any structural works, if there have been any previous claims or subsidence or flood issues and if you plan to keep the property or sell on. With the cover we sell you will automatically be covered for Property Owners Liability, so it would only be Land Liability Insurance that you would need, but this is only if you have an empty plot of land.
  • You would then enter the development stage which would meaning choosing a contractor for your project, or you might be doing the works yourself. Either way if you’re doing structural works and works outside of the original stamp of the house then you will need to get a contract works policy or a contractor’s all risk insurance in place. You must make sure though, that the policy you or your contractor has, covers the cost of the entire project and its duration.
  • You will need a JCT contract put in place with the developer and then decide if you need to take out a minor works JCT 5.4a or a JCT 5.4b.
  • If there are major renovation works taking place then a JCT 21.2.1 should be purchased for non-negligent cover which would protect neighbouring properties from any unforeseen event due to the build.
  • It would then be worth checking to see if you need a Right of Light insurance (usually with a Right of Light Surveyor), which will protect you from being sued by a neighbouring property for impeding on their light.

As you can see being a property developer is not just about buying a property diving into it head first and then coming across a load of issues. It’s about being sensible and looking at all angles to protect your asset which will in turn hopefully show you a profit. At construction insure we are set up to help you in all areas of property developers insurance, so if you are unsure of anything having a read of our site or give us a call and we’ll be more than happy to help.

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