Site Insurance & Structural Warranties – How to Get it Right

Figuring out what insurance is right for your project can be a daunting task. When should you start looking for policies and warranties? And at what stage of your project do they need to be in place? In this guide, I cover the key steps to ensuring you get the right cover in place for a stress-free build.

What kind of insurance do I need for my project?

The cover required for self build and renovation projects is known as a site insurance policy. It will typically cover the following items:

• Contract works (the works being undertaken)
• Public liability
• Employers’ liability
• Building materials for theft and or accidental damage
• Consequential loss to any existing structure you may have
• Plant, tools and equipment
• Storm damage

Consider a structural warranty for any project that involves new building work, too. This will cover the property for defective design, workmanship or materials for 10 years after completion. It’s an essential purchase for any projects which will be sold within 10 years of completion or funded by a mortgage.

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Is my builder’s insurance enough to cover me?

Your site insurance policy will cover the site as a whole and all incidents related to the works which take place, regardless of whether the contractor is at fault. Meanwhile, a builder would typically only have public liability insurance, covering them for anything they are responsible for while actually working on site.

So, if an incident occurs and you, as the site owner, are not able to prove the builder was at fault for the issue, you may not be able to claim through their insurance. You would also not be able to claim for incidents that happen overnight or the weekend, as the builder may not be responsible for the site at that time.

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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 build (timber frame, masonry etc), 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.

When should I start approaching companies for insurance quotes?

It is always best to give yourself more time than is needed when looking to purchase an insurance policy for your project. We recommend getting 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 is so that you can ensure you give yourself enough time to secure a quotation and put the policy in place before construction gets underway. However, if you do start works prior to arranging your insurance, your policy can still be set up retrospectively.

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.

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