Self-Build Insurance: What you need to know
Originally posted on https://www.ncc.org.uk/property-maintenance/self-build-insurance-what-you-need-to-know/
Starting a project on your property may sound productive, rewarding, fun even, but not only is it a lot of hard work, but it is also a huge liability. Whether you are hiring a contractor or doing everything yourself, there are intricacies to home insurance that will make or break you. Understanding what you need to be insured for and how it will protect you is key to having a lasting renovation, extension, any self-build you are looking to do.
Will my Home Owner’s Insurance Cover Me?
The short answer to this is no. While most home insurance policies will cover small renovations, they will not cover big projects or materials. The best way to see what your insurance already covers is to simply tell them about your plans. There are different restrictions for each policy and it is important to know what is already covered and what is not.
What if my Contractor is Insured?
Even if you are hiring a contractor and they are personally insured, their policy will not cover materials and tools you buy that are lost or stolen. Furthermore, if the contractor or their employees are injured on the job, it is better for them to seek compensation through your insurance. If you don’t have it, you will find yourself in a lot of trouble. This is why it is absolutely crucial to take out the necessary insurance in order to avoid an unfortunate situation.
What Kind of Insurance do I Need?
What you need to get is insurance that covers accident damages and injuries. Don’t mess around with pricey brokers, there are insurance policies designed for self-builds and renovations. Taking out the proper insurance will ensure that if your personal belongings or the home itself are damaged, you will receive proper compensation. If someone is hurt on the job, you will not be held financially responsible.
If you are planning on leaving your home for more than 30 days while the work is done, it is key to tell your insurance provider. Getting legal cover necessary for finishing the job is also very beneficial should there be mishaps extending the building period and increasing the price. While self-build insurance varies, according to MoneyPug, a site used to compare cheap home insurance, taking out the essential insurance policy doesn’t have to break the bank. They are usually based on the rebuilding costs on a sliding scale. In order to avoid massive costs from accidents, you need to insure for project finishing costs and physical injuries.
How Much Will Insurance Cost?
For a home around 140 square meters large, the average cost will cost from £600 to £1200, with variations accounted for by proposed construction costs. Personal possessions may be additional charges in a self-build policy. This may sound like a lot, but the policy is converted into your household insurance when the alterations are finished. Insurance is worth it, you don’t want an unexpected tragedy on your hands.
Where Can I Buy Insurance?
You don’t need to use a High Street broker, they’ll tell you that you need the same policy as a full-time builder or developer. With a specialized self-build insurance provider, the cost is much less and it will be clear what you need to be insured for.
Most insurers will want you under a Joint Contracts Tribunal (JCT) contract. There are a number of subtleties in JCTs, so you should be honest about what you are doing. A homeowner renovating or expanding property in a large project may cover some of the job, but you may need to agree to unavoidable clauses. One example of this is that you will not be covered in the event of a flood, or they may fail to cover the stolen property.
Avoiding this can be done by being clear, open, and honest with both the self-build insurer and your home owner’s insurance. Whatever you are planning on doing to your property, having the right insurance will alleviate stress and avoid unfortunate circumstances should something go wrong. Investing in insurance will help you keep your savings and help put it towards upgrading your property, not throwing away money to fix damages or cover injuries. Don’t regret your decision by risking it, get insurance and get building today!
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