Insuring my self build: what you really need to know
Purchased your plot? The moment you purchase a plot you are responsible for it and more importantly if anyone gets hurt on your plot whether invited or trespassing. You need to make sure you have public liability cover from the moment you complete on a plot.
Ready to start?
Before you start you need to make sure you are fully covered with an all-risk Site Insurance policy. This will protect your site from theft, fire, storm, anyone you bring on site and any existing structure, and more. Your Site Insurance is unique to your build and covers the whole cost of the build, public liability, employers liability and more. You may think your builder has insurance but this often isn’t enough to cover the whole build and often has exclusion for when they aren’t on site and you will need to prove them at fault to be able to claim which can take years. Site Insurance takes the stress of this away
Are you using a lender or think you might sell your property in the next 10 years?
You never know what might happen. Many people build their homes fully intending to stay in them and find themselves needing to move and unable to because they didn’t arrange a Structural Warranty. A Structural Warranty is an insurance policy that protects new works against defects in design, workmanship and materials for 10 years. More importantly, it is a Lender requirement in the UK, meaning if you wish to use a mortgage or need to sell the property to someone using a lender you will need to have a Structural Warranty on your home.
When should I arrange my Structural Warranty?
A Structural Warranty should always be arranged before you start ( usually when you arrange your Site Insurance). This is because your Structural Warranty provider will need to carry out key stage inspections on the build and the first one will be for any new foundations. If you do not arrange your warranty before you start you will end up paying a higher premium as the Warranty provider has not inspected the build. In some cases, you may not even be able to get a Warranty after you have started.
Choosing your Warranty provider?
You need to make sure your provider is ‘A’ Rated. A Structural Warranty isn’t the same as your average annual insurance policy, it is a long-term policy of 10 years. You need to be confident that your provider will still be running at the end of the 10 years, or your home could end up uninsured and in breach of mortgage conditions.