Myth busting insurance protection for self builders

Building your own self build property requires a lot of planning and preparation before construction starts. Keeping to a budget is a priority for many self builders, so having the correct insurance in place can offer protection against the likelihood of unexpected, costly problems.

Myth 1 - Home Insurance covers your self build project

Home Insurance covers your property once it's built but not during the construction phase. Self Build Insurance is designed to cover the risks associated with building your own property and some mortgage lenders may require specific insurance as a condition of your mortgage, so it’s worth checking this in advance.

Self-Build Insurance covers your project from the moment you start building until completion and can convert into Home Buildings & Contents Insurance for up to 90 days after your new home is complete.

Myth 2 - You only need insurance once you start building on-site

Your site is exposed to risks from the moment you exchange contracts and own it, and site insurance offers insurance protection against risks such as injuries on your site, theft, fire and flood. Don't assume your contractor's insurance covers you; plan your insurance beforehand to avoid expensive problems that could impact your overall budget.

Myth 3 - Your builder's insurance is enough

Don't assume your contractor's Public Liability Insurance covers your self-build project. You (the owner) are responsible for insuring your self-build site, so having your own insurance in place can provide you with peace of mind that your budget is protected against the cost of a range of risks.

Myth 4 - My contractor has insurance to cover accidents on-site

If you decide to hire sub-contractors or friends to work on your self build project, you become their employer. Employers Liability Insurance is legally required if you employ more than one person (trades or other professionals), so it's worth checking you have the right cover. Selfbuild Insurance automatically includes £10m Employers Liability Insurance for employees who suffer an accident or injury on-site.

Myth 5 - I don't need a structural warranty for my new home

Some mortgage lenders require a Structural Warranty to be in place before they agree to provide you with a mortgage or release funds for your project. Others may ask you to have a Structural Warranty before completion. Speak to your mortgage lender to understand their requirements before purchasing a structural warranty.

Self-build Insurance Structural Warranties offer wider protection than an Architect's Certificate and are designed to meet the requirements of mortgage lenders.

If you'd like to learn more about any of our insurance products or would like to arrange cover, give us a call today on 0800 230 0225 or email us at enquiries@selfbuild.uk.com