Self-build home insurance is an important consideration for anyone who is planning to build their own home. It’s not something that everyone thinks about, but it is crucial to have the right cover in place to protect your investment.
In this blog post, we will discuss everything you need to know about self-build insurance. We will cover the different types of cover available and explain how to get the best deal on your self-build insurance policy.
What is Self-Build Insurance?
So, what is self-build insurance? Well, it is a specialised form of home insurance that is designed to cover the risks associated with building your own home. This type of insurance policy can cover the cost of materials and labour, as well as any damage that may occur on the building site during the construction process.
It can include Construction insurance, Contractors Insurance, Land Insurance and Site Insurance.
Why you Need Self-Build Insurance
There are so many aspects to a self-build, which means there are many stages where things can go wrong. It’s important to limit your financial and legal exposure to potential problems at every stage of your build with the right insurance cover.
For instance, if you’ve purchased land, has your solicitor checked for any restrictive covenants or absence of easement? If not, these could stop you from making full use of your land and even cause you access complications. Fortunately, you can obtain specific policies to cover those issues.
If you’re building close to other houses, have you considered the Rights of Light legislation? Being aware that you have to maintain your neighbours’ right to adequate light can save you massive problems during, or even after, your build. You can insure against those claims in the event they do occur.
These are just a few of the obstacles that could arise even before the build has begun. You’ll need protection from issues like these and taking out the right self-build insurance against these types of problems can help your project go ahead as smoothly as possible.
How Does it Work?
Self-build insurance is a type of insurance specifically for homes that are still under construction. It can be taken out as soon as you have the land, and usually lasts between three to 24 months, depending on the estimated completion time of the build. If building takes longer than expected, it’s usually possible to extend the insurance policy.
Self-build insurance isn’t offered by most regular home insurance providers, so you’ll need to find a specialist insurer like Construction Insure.
Self-build insurance covers the same things as normal home insurance, like damage from fires, storms, floods, and theft. It also covers any damage that might happen during the construction process, such as if a worker accidentally damages your property.
You’ll need to make sure that you have enough self-build insurance to cover the full value of your home, as it would be very expensive to replace everything if something went wrong.
If you’re planning on self-building, make sure to research self-build insurance and get a policy in place before you start construction. It could save you a lot of money and stress in the long run.
Choosing the Right Self-Build Insurance
You need to consider your contractor when building your home. Even if you think you have found a great builder, they will be in charge of your future home. Make sure they have the proper insurance for things such as accidents, injuries, and material defects.
A good idea is to review your contractor’s policies to ensure that your self-build is covered in case of any claims. The right policies will cover the cost and length of the contract. If these policies are not in place, you could be facing disputes later on.
Another way to protect your investment is to ask your contractor to supply a Performance Bond. This will protect you in the event that the builder runs out of funds or if there is some sort of business interruption, like flooding.
You could also get Contingent Cover Liability insurance, which is a JCT (Joint Contracts Tribunal) contract between you and your builder. This safeguard acts in tandem with the builder’s own insurance in case their insurance fails for some reason.
Another JCT you might need is 21.2.1, which safeguards you and your contractor from non-negligence claims that arise during the project. Non-negligence claims are for problems that can’t be anticipated, like subsidence or flooding, but would still require remedial work.
Not only do you need to make sure your contractor is properly insured, but you also need to make sure your own home is covered in case of any accidents or damage. Construction Insure can advise you on the right policies to put in place to protect your home and your investment.
Self-build projects are a big commitment of both time and money. We are also well aware of the potential issues that can come up and how to protect you against them.
Other Insurances to Consider
Other types of insurance to think about include unoccupied property owners’ insurance and building warranties.
Unoccupied property owners’ insurance is important in case something happens to the property while it is not being lived in.
Building warranties are important if you plan on selling the property, as most lenders will require one before they agree to finance a purchase.
Having both of these types of insurance in place will help to protect your investment and give you peace of mind.
You should also consider checking that public liability insurance is in place. This sort of insurance policy can protect you from legal claims if someone is injured on your property.
If you have tenants, this type of insurance is especially important, as they may be more likely to sue if they are injured. Public liability insurance can help to protect your assets and give you peace of mind in case something happens.
Another important type of insurance is homeowners’ insurance. This type of insurance protects your home from damage or loss due to events like fires, storms, and theft.
If you have a mortgage on your home, most lenders will require you to have this type of insurance in place. Homeowners insurance can help to protect your investment and give you peace of mind in case something happens to your home.
What to do Next
If you’re planning a home renovation or rebuild, you’ll need a non-standard or specialist home insurance policy. The same is true for self-build homes once they’re finished. Without the right kind of coverage, you could be left high and dry if something goes wrong.
With all these different factors to consider when you’re self-building, it can be tough to know where to turn for advice. That’s where we come in. We’re here to help you understand exactly what you need and make your self-build as problem-free as possible.
To find out how we can do that for you, please call us on 0203 9586868. We’ll be happy to discuss your self-build insurance requirements and help you to get started on your exciting new self-build project. Or you can fill out our contact form and we will be in touch.