Your Complete Guide to Self Build Insurance & Warranties – How to Get it Right

Investing in the building plot, design and construction phase of your self build project is likely to represent a considerable investment, running into hundreds of thousands of pounds. Yet, amidst the excitement of planning layouts and selecting finishes, one crucial aspect often slips under the radar: site insurance and warranties.

These specialist forms of insurance are designed to protect your investment and provide peace of mind throughout the build process and beyond. However, they’re frequently overlooked during the initial planning stages, rarely making it onto the project checklist. That can leave self builders vulnerable to unforeseen risks and financial liabilities.

Here’s your complete guide to self build insurance and warranties:

What is self build insurance & why is it essential?

Self build site insurance is a vital safeguard, whether you’re constructing a new home or working on a renovation, conversion or extension project. Creating a bespoke home demands time, dedication and substantial financial commitment.

So, it’s imperative to secure insurance for your self build from the moment you acquire the plot. A self build site insurance policy covers new construction work, existing structures and the entire site. A good policy cover checklist can be broken down as follows:

• Public & employer’s liability
• Building works & materials
• Plant, tools & equipment
• Site huts & temporary structures
• Existing structures
• Personal accident cover
• Legal expenses

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Building a home is one of the biggest investments you can make, so it’s important to ensure you’re covered with the correct insurance and warranties

Surely my builder is covered?

Your builder may have told you they have the necessary insurance in place, and they might genuinely believe they have full coverage. Unfortunately, the reality often differs. Their policy usually only offers a degree of public liability coverage.

This type of insurance solely protects them in instances where they cause harm or damage to a third party due to negligent actions – a scenario that requires substantiation on your part. But it won’t typically cover your liability outside of this narrow area.

How much does site insurance cost?

Prices vary, but expect to pay between 0.5% and 1% of the overall build cost. That’s a small fraction of your total spend in return for confidence that any hiccups along the way are covered. You wouldn’t drive a car without insurance, so why would you build your house without it? Site insurance should be right up the list of priorities in your budget!

Building your home may be one of your largest investments. With a good self build insurance policy in place, you get peace of mind that your new home is adequately protected throughout the construction – and for the future, too.

What elements of my project should I have in place before taking out insurance?

It’s advisable to have a good idea of what you are looking to build before you take out site insurance. This includes, but is not limited to, the construction method for your home (timber frame, masonry etc), the floor area, build cost and the time frame in which you expect to complete all the works. Remember, quotations and policies can always be amended if this information changes later on.

Photo: iStock.com/AndreyPopov

When should I start approaching companies for insurance quotes?

Buying car or holiday insurance is often a needs-must impulse purchase. Give yourself more time when looking for a policy for your project, and seek quotes as soon as possible. This could be either from the point you obtain a plot of land or property, or around 30 days before works begin – but no later than approximately two weeks before. This will ensure you have enough time to secure a quotation, fully understand the cover and put your policy in place before construction gets underway. If you start works prior to arranging your insurance, a policy can still be set up retrospectively.

Why do I need a structural warranty?

Building a new house or completing structural works to an existing property can be complicated. In some cases, flaws in construction quality may only become apparent over time – perhaps years after completion. This is where a structural warranty comes into play.

This type of insurance provides coverage for any deficiencies in the design, craftsmanship and materials of your self build project – including issues affecting drainage or waterproofing – for up to 10 years post-completion. These issues can be costly to rectify and may necessitate either partial or complete rebuilding. Structural warranty insurance protects you against the costs associated with rectifying latent defects, offering reassurance that your self build investment is secure.

A structural warranty is essential if you need a mortgage to fund your self build, conversion or extension. It’s also vital if you intend to sell: most lenders mandate a structural warranty to mortgage a self build home, with the warranty seamlessly transferring to the new owner upon sale.

At what stage should I put a structural warranty in place for my build?

It’s best to purchase a warranty around two weeks prior to getting started on site. As part of the warranty, there will be inspections at key stages of work throughout the project. If those stages are missed, it does increase the warranty price.

While you can purchase structural warranties if construction has already begun on site, they are much more expensive and harder to find the further down the line you get.

Jake Fitness Jake Fitness is operations manager at Self-Build Zone, which offers a comprehensive range of specialist self build, renovation, extension and site insurance cover, and self build warranties. For more information about self build warranties and insurance, visit the Self-Build Zone website or call 0345 230 9874.