New Build Insurance - Your Questions Answered

Whether you’re embarking on a self-build project, managing a new-build development, or overseeing a custom build, insurance should be an essential part of your planning from the outset. At Self-Build Zone, we understand that navigating the world of new build insurance can be confusing, especially for first-time builders. That’s why we’ve compiled this comprehensive guide to answer your most frequently asked questions.

What Is New Build Insurance?

New build insurance, often referred to as site insurance or self-build insurance, is designed to protect your new home during its construction. It is a specialist form of cover that differs significantly from standard home insurance because it accounts for the unique risks involved in building a property from scratch.

Whether your build is traditional, modular, timber frame, or eco-friendly, this type of insurance ensures that your investment is protected against accidents, damage, and liabilities that could otherwise lead to financial loss.

Do I need building insurance for a new build?

Yes. You need specialist site insurance during construction to cover the build, materials, and liabilities. Once completed, you’ll then need standard building insurance for the finished home.

During a new build project, you face a wide range of risks. From fires, floods, theft, and storm damage to accidental damage caused by contractors, uninsured builders, or even structural failure, the list of potential setbacks is long.

New build insurance provides protection not only for the structure as it’s being built but also for your materials, plant, equipment, and liability. It also ensures that you’re covered for legal and financial claims should someone get injured on-site or a neighbouring property be damaged as a result of your works.

Most mortgage lenders will require you to have adequate site insurance in place before they release funds.

When Should I Take Out Cover?

Ideally, you should arrange your insurance before you even break ground. As soon as you own the land and start storing materials or preparing for construction, you are exposed to risk. Taking out insurance early helps protect you against unforeseen events right from the start.

At Self-Build Zone, we recommend beginning the policy at the point you exchange contracts on the land or when materials arrive on-site, whichever comes first.

What Does It Cover?

Our Self-Build Zone Site Insurance policies typically include:

• Contract works: Damage to the build itself during construction
• Public liability: Cover if a third party is injured or their property is damaged
• Employers’ liability: Essential if you’re hiring contractors or managing labour directly
• Tools, plant, and equipment: Protection against theft or damage
• Existing structures: If you’re extending or renovating a current building

How Is It Different from a Structural Warranty?

It’s important not to confuse new build insurance with a structural warranty. While site insurance covers you during the construction phase, a structural warranty (such as our 10-year Self-Build Zone Warranty) protects the completed home against defects in design, materials, or workmanship. It typically lasts for 10 years from completion and is required by many mortgage lenders.

In simple terms:

Site Insurance = protecting you during the build

Structural Warranty = protecting you after the build

Who Needs New Build Insurance?

You’ll need this cover if you are:

• Building a new home from scratch
• Project managing your own build
• Converting a non-residential building (e.g. barn conversions)
• Undertaking a major renovation

Extending an existing property with structural changes

Even if you are using a main contractor, you may still be responsible for insuring the project unless it is explicitly covered in their contract. Always check who is responsible for insurance before work begins.

How Much Does It Cost?

Premiums vary depending on the size, location, and value of your project, as well as the duration and complexity of the build. The cost also depends on whether you are building for sale or your own use, and if any high-risk elements are involved (such as basements or thatched roofing).

At Self-Build Zone, we offer flexible policies tailored to your individual needs, providing short-term options ranging from 3 months to 2 years, with the ability to extend if needed.

How to insure a new build house

Start with site insurance from the moment you own the land or begin work. Once the build is complete, arrange building insurance for the finished structure and consider a structural warranty for long-term protection.

Does new build insurance cover driveways?

Yes, if the driveway forms part of the contract works, it can be covered under site insurance. This includes damage or theft during construction; however, always check the policy specifics.

Does a new build need a latent defect insurance policy?

Yes, most new builds need a latent defect insurance policy (also called a structural warranty). It protects against structural issues for 10-12 years and is often required by mortgage lenders.

What Should I Do Next?

If you’re planning a new build project, don’t leave your insurance until the last minute. Contact our experienced team today to discuss your plans and ensure you’re fully covered from the outset.

You can request a quote online or speak to one of our advisors for expert guidance.

Ready to get started? Contact us today or get a quote to protect your new build with confidence.