Building your home is likely to be the biggest project you can ever undertake, so it’s essential to put the right protection in place. While the vast majority of self build homes are completed without major problems, there’s no doubt that undertaking a construction project brings a degree of risk, both financially and in terms of site safety. Normal household insurance won’t cover schemes like this, below we have set out the difference between insurance and structural warranties and the basics of how you can protect your investment.
When should I start insuring my project?
As soon as you’ve bought your plot, you become responsible for it (i.e. you assume liability for what happens on it). Even if you’re not commencing building work straight away, you’ll almost certainly still need to arrange cover against the possibility of accidents and other issues occurring on your site. Derelict structures or properties, out buildings, ponds, old wells or diseased trees could all present a liability.
What about when works get underway?
As soon as you carry out anything on the plot to enable your project to start, landowners liability won’t be sufficient, even if you’re simply clearing shrubs.
So before works get underway, you need to arrange for full self-build site insurance to be in place to cover the works, materials and equipment, as well as your liability for anyone involved in the project, this includes risks such as fire, flood, theft and accidental damage to neighbouring property.
The key elements of a site insurance policy, are public liability (protection against claims for damage or injury to members of the public, neighbouring services etc.) employers liability (cover against claims from sub-contractors) and contract works (protection for the materials/equipment etc. on site and the house over the course of the construction project). Look for contractors ‘all risk insurance’ if you’re self-managing the build.
Site insurance is normally available for standard build periods between 12, 18 and/or 24 months with additional options to extend if necessary.
A useful tip is to add a reminder into your calendar to remind you when the insurance period is due to end in case your works run over schedule
What’s the difference between insurance and a structural warranty?
These two products are often sold by the same providers, but they are very different. Site insurance covers the land and the works before and during the construction project, Structural warranty’s kick in after the completion date, providing a 10-year guarantee against structural defects in the design, workmanship or materials that went into the build, and the cost of remedial work to put any issues right should any issues arise post completion.
The process involves an assessment of your structural drawings and health and safety plans, followed by a series of technical audits on site during the works. Most providers use experts who can act as approved inspectors under the building control regime. Many self-builders choose to appointment them for both elements/roles, which can reduce the number of site visits and therefore often reduce costs and offer better value for money.
While a structural warranty isn’t compulsory, it’s a sensible investment, giving you peace of mind that your new home is protected in the long term. It’s also essential if you want to sell the property within 10 years of the completion date, as potential buyers won’t be able to get a mortgage if there is no warranty in place.
Thinking of starting your own new build or similar project? Check out our portfolios below.
New Build Portfolio
Extension & Renovation Portfolio
Instagram Page
