The Shocking Truth About Builder’s Insurance You Need to Know

Many self builders assume that their builder’s insurance automatically protects them if something goes wrong during construction. Unfortunately, that assumption could cost thousands of pounds. Builder’s insurance is designed to protect the builder and their business, not the homeowner.

Without your own cover, you could be left to deal with theft, damage, or accidents entirely out of pocket. Here is the truth every self builder needs to know before work begins.

Builder’s Insurance Does Not Protect You

This is the biggest misconception in the self build world. A builder’s insurance policy usually includes public liability, employer’s liability, and cover for the builder’s own tools and equipment. While these elements are essential for the builder, they do not protect your materials, your unfinished property, or your financial investment.

If your partially built home suffers damage from fire, flood, or vandalism, the builder’s policy will not pay to repair it unless you can prove the builder was directly at fault. In most cases, this means you would have to fund repairs yourself. Even worse, if your builder’s policy expires, is cancelled, or does not cover certain activities, you may not even realise until it is too late.

You Must Prove to Make a Claim

Even if your builder has insurance, you cannot simply assume their policy will cover damages caused during your build. To make a successful claim, you must prove that the builder’s negligence directly caused the problem. For example, suppose a wall collapses or water ingress occurs due to poor workmanship. In that case, you must provide evidence that it resulted from the builder’s mistake rather than bad weather or another factor.

This process can be complicated, stressful, and time-consuming. It often involves technical assessments and legal intervention. Without clear evidence of fault, your claim is likely to fail, leaving you to bear the costs. Having your own self build insurance eliminates this uncertainty, ensuring you can recover losses quickly without lengthy disputes.

Builder’s Insurance Can Have Gaps, You Do Not Have Control

Because your builder is the policyholder, you have no control over what their insurance does or does not cover. If the builder changes insurers, allows their policy to lapse, or fails to disclose all relevant details, your project could be left completely uninsured without your knowledge.

Furthermore, subcontractors working under your builder may have separate or limited insurance, creating gaps in coverage that can cause major complications if something goes wrong. These grey areas are where self builders often find themselves most exposed.

Why You Need Your Own Self Build Insurance

Self build insurance is specifically designed to protect homeowners undertaking construction projects. It covers the building works, materials, tools, and liabilities under your control, ensuring that you remain protected from start to finish. Unlike builder’s insurance, it provides immediate support if your project suffers theft, fire, storm damage, or accidental incidents, without needing to prove another party was at fault.

It also includes public and employers’ liability cover where applicable, giving you protection against accidents involving visitors, workers, or neighbours. Importantly, having your own insurance guarantees continuous cover, even if your builder changes or stops working on the project.

Protect Yourself Before You Start Building

Before any work begins, always ask your builder for proof of their insurance, including coverage details and expiry dates. Confirm that subcontractors are also covered and that all parties understand their responsibilities. Then, arrange your own self build or site insurance policy to ensure that your interests are protected at every stage.

Relying solely on your builder’s insurance is a gamble that can have devastating consequences if things go wrong. With self build insurance from Self-Build Zone, you are covered against the unexpected and can move forward with confidence, knowing your investment is protected.