Self-Build Insurance from the ground up

Do I need insurance for a self-build?

We are used to insuring our most valuable possessions these days. Yet every year lots of people build or renovate their own homes without any insurance — a project costing tens or even hundreds of thousands of pounds. For many of them, the gamble pays off — if indeed they even knew they could insure their project in the first place. But it can be an extremely false economy.

Lenders may request proof of an insurance policy

Building sites are risky places – not just for accidents but also for things like theft – and anyone taking a project like this seriously needs to account for the bad things that might happen, as well as the fantastic and exciting things.

Beyond an insurance policy providing peace of mind that is worth its weight in gold, lenders and especially those consistently working to help self-builders, are increasingly demanding proof of the existence of a suitable policy before releasing funds.

Damage to your neighbour’s property

One huge potential pitfall is if you are carrying out work close to your neighbour’s foundations. If work on your project damages a neighbour’s property, this won’t be covered by Public Liability insurance. You need to make sure you have a Self-Build Site Insurance policy to cover your whole build from plot to completion.

A self-build is usually one of the largest financial investments you will make, so you need to ensure your whole plot is protected as well as those you bring on site. If you are intending to rely on a professional’s insurance policy, you need to make sure it is sufficient for your whole build. You can do this by requesting to see a copy of your professional or builder’s insurance policy to see if it is comprehensive enough to cover all of the above.

What else can you do to protect your self-build site?

Request your contract in writing

If you pay a contractor to do some work on your property, you have a building contract with them. It doesn’t have to be in writing – but even for a fairly small job, it’s sensible (we’d argue essential) to at least set out the main terms on paper. Without this, it’s your word against the builder’s if disputes arise, and it can be difficult to prove your case based on a verbal agreement.

A fair contract will foster a good rapport, so a decent builder will want one as much as you do. Plus, having an agreed price and payment terms works in their favour as much as it does yours.

Many self-builders overlook the need for contracts, but a contract can help keep your self-build on track. Putting a simple agreement in place, alongside a straightforward claims form, can also put you in good stead with your insurer.