When might self-build insurance be needed?
It’s a simple question that doesn’t have a simple answer unfortunately. We look at cases for what insurance you might need on a case by case basis. However, the key stages of a self-build project where you might need, or must have, insurance are:
Arranging finance – If you’re going to borrow money to finance your self-build, you may need a mortgage. Before they will lend money for a self-build project, most lenders require that a structural warranty policy is in place, or will seek assurance one will be in place from the completion of build.Buying a structural warranty policy at the start of your project can be cheaper than buying it at the end.
Looking for a plot – At this stage, you might not need specialist self-build insurance, but if you’ve purchased equipment, materials or fittings in preparation, you should make sure you have an insurance policy with sufficient cover in case of theft or damage.
Owning land – Once you’ve bought land, you have insurance liabilities.People visiting your land, with or without permission, could be injured or killed. That’s where public liability insurance covers you. Without it, you could be liable for injuries on your site.
Owning a plot – SelfBuild site liability insurance is designed to protect your plot and your site liabilities once you’ve started the process of applying for planning permission.
The build – Once work starts, you have more of a need for self-build insurance. With builders, suppliers, materials, tools, plant and machinery all on site, there are lots to consider. The new building itself will start to have a value as well, and should be insured before completion.
Completing the build – As you move through final fix, decorating and installing appliances, you may start thinking about moving in. As the value of items within the property increases, be sure to check that everything is covered, and that limits are high enough.
Moving in – You’re finished!Now you need to consider having buildings and contents insurance in place. Some self-build policies automatically provide a level of home insurance cover, so be sure to check before you buy.
After completion – Once finished, a structural warranty policy is designed to cover the costs of making good if the build was defective because of design, materials or workmanship. Mortgage lenders usually require this to be in place prior to lending, but it comes into effect at build completion.Self-build insurance is the name for a collection of insurance covers required by people building their own home.
It’s also the name of our core self-build insurance product. Our SelfBuild Insurance is designed for self-builders, and covers from the point the build phase starts, until build is complete. Our SelfBuild site liability policy can also cover your site liabilities before work starts.
Building your own home is likely to be a once in a lifetime project. Being a one-off, much of the project is likely to be unfamiliar, especially your insurance obligations and needs.
Given what a complex subject self-build insurance can be, we have provided two guides we hope you’ll find useful:
- The SelfBuild Insurance guide to a stress-free self-build
- The SelfBuild Insurance 5 minute guide to our products
This information is provided as a guide only, and if you’ve got any questions, please give our expert team a ring on 0800 230 0225.
Our SelfBuild insurance is designed for self-builders, who are building their own home ‘from the ground up’, and plan on living in the property once it is complete.
With a self-build project, the only insurance you legally need to have is employers’ liability insurance, which is required if you directly employ people.
However, given the financial sums involved, and the potential risks you’re likely to face during the project, saving money by not having a self-build insurance policy could prove to be a false economy.
The difference is based on whether or not it can be demonstrated there‘s a clear intent to use the land for self-build purposes.
Land is an area you’ve purchased, but where it can’t be adequately demonstrated that there’s intent to build on it.
A self-build plot is land that’s been purchased where it can be clearly demonstrated there’s intent to use the land for a self-build project.
This intent can be demonstrated through:
- plans being drawn up for construction that will take place on the land,
- a submitted application for planning permission that applies to the land,
- or work taking place on the land.
Our policies don’t cover land that has been purchased and where this intent cannot be proven. If you’re not sure, please get in touch on 0800 230 0225.
If you have a self-build plot but work hasn’t started, Site Liability insurance is designed to cover your site before work has started, and can be converted into a SelfBuild policy before the build phase begins.
Our policies only cover sites where it can be clearly demonstrated there’s intent to use the land for a self-build project. This can be proven with either plans being drawn up for construction taking place on the land or a submitted application for planning permission applying to the land.
If you’ve already started the build phase, we’ll need to discuss your project with you before we can organise any cover.
Please ring us on 0800 230 0225, or leave your details in our Call Me form and one of our team will call you back during office hours.