28 June 2023

A Solid Foundation: Why Site Insurance is Essential for Your Self-Build House Project

By Self Build Zone

Embarking on a self-build house project is an exciting and rewarding journey. The opportunity to create your dream home, tailored to your unique requirements, is something many of us aspire to achieve. However, with every construction project, there are many complexities and risks that must be addressed. One such crucial aspect is obtaining site insurance for your self-build house.

In this blog post, we’ll delve into the importance of site insurance and explain how it differs from standard home insurance and what you need to know about coverage and exclusions. We’ll discuss how it provides you with a financial safety net, safeguards your investment, and ensures a smooth construction process from start to finish. So, don your hard hat and join us as we explore site insurance and its vital role in turning your self-build dreams into reality.

The Foundations of Site Insurance

Site insurance, or self-build renovation insurance, is designed to protect your construction project from the ground up. Unlike standard home insurance, which primarily covers an existing property and its contents, site insurance is tailored to address the unique risks of constructing a new home.

The importance of site insurance must be balanced. It safeguards your investment, protecting you financially against unexpected events that could derail your project. With site insurance, you can proceed confidently, knowing you have a safety net to fall back on if things go awry.

Laying the Groundwork: Coverage and Exclusions

While policies can vary between providers, our site insurance typically covers the following:

  1. Construction materials and equipment: Protection against theft, vandalism, and accidental damage to building materials, tools, and machinery on-site.

  2. Contract works Coverage for repairing or redoing work damaged or destroyed during construction.

  3. Public liability: Protection against claims made by third parties who suffer injury or property damage due to your self-build project.

  4. Employer’s liability: Coverage for claims made by employees or subcontractors injured while working on your project.

  5. Legal expenses: Assistance with legal fees that may arise due to disputes or claims related to your self-build project.


The Differences Between Site Insurance and Standard Home Insurance

While site and standard home insurance are designed to protect your property, they serve different purposes and cover specific risks. Here are some key differences between the two:

  1. Coverage duration: Site insurance is a temporary policy that covers your self-build project from start to finish, whereas standard home insurance is an ongoing policy that protects your completed home and its contents.

  2. Risk profile: Site insurance addresses the risks of constructing a new home, such as damage to building materials or liability claims from injured workers. In contrast, standard home insurance covers more common risks like fire, theft, and water damage.

  3. Premiums and deductibles: Site insurance premiums are generally higher than standard home insurance premiums due to the increased risks involved in construction projects. Deductibles for site insurance policies can also be higher, reflecting the potential for significant financial loss.


7 Things Standard Home Insurance Doesn’t Cover During a Self-Build, House Renovation, or Home Extension

  1. Construction materials and equipment: Standard home insurance policies usually don’t cover the theft, vandalism, or accidental damage of building materials, tools, and machinery stored on-site during construction.

  2. Contract works: If work completed during your self-build, renovation, or extension project is damaged or destroyed, standard home insurance won’t cover repairing or redoing the affected areas.

  3. Public liability: Standard policies often exclude coverage for claims made by third parties who suffer injury or property damage due to your construction project.

  4. Employer’s liability: Injuries sustained by employees or subcontractors working on your project is not covered by standard home insurance, leaving you vulnerable to potential claims and legal expenses.

  5. Unapproved alterations or additions: Many standard home insurance policies require homeowners to notify their insurer of any significant changes to the property, such as extensions or structural alterations. Failing to do so may result in a lack of coverage for those changes.

  6. Increased risk exposure: During a self-build, renovation, or extension project, your property may be exposed to higher risks, such as fire or water damage from construction activities. Standard home insurance policies may not provide sufficient coverage for these increased risks.

  7. Vacancy clauses: Some standard home insurance policies include a vacancy clause, which stipulates that coverage may be void or limited if the property is unoccupied for an extended period, typically 30-60 days. This can pose an issue during lengthy construction projects when the homeowner may be required to move out temporarily.

In conclusion, standard home insurance doesn’t often provide comprehensive protection during self-builds, house renovations, or home
extensions, hence the need for specialist cover. Self-builders and homeowners must explore specialised site insurance or renovation insurance policies to ensure they’re adequately covered throughout construction.

Site insurance is vital to any self-build house project, providing essential protection against the risks and challenges of constructing a new home. Understanding the differences between site insurance and standard home insurance allows you to make informed decisions about the coverage you need to ensure your dream home becomes a reality without any unwelcome surprises.

Looking for a self-build site insurance quote? CLICK HERE


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