Self Build Insurance

Common Policy Types
More Policies You May Need

As well as being one of the most rewarding things you will ever attempt, building your own home is also one of life's riskier challenges. That's why you must ensure that you've all the necessary cover.

You may be able to skimp on some building materials but never cut corners when it comes the insurance policies. There are so many variables depending on how and where you build that it's advisable to seek professional advice from an insurance broker with experience in self-build so that you really do have all bases covered. Here's a round-up of the most common policy types...

Site Insurance

Sometimes termed Contracts Works Insurance, this is the cover most akin to your domestic house and contents policies. It protects you against losses that can be caused by vandals, theft, fire, flood, delivery vehicles and other eventualities that could cost you time and money. A typical policy will include tools and plant you own or have hired, any sheds, caravans or outbuildings and the cost of reconstructing the property if things go dramatically wrong.

Public Liability Cover

Probably the most important policy you will buy for your project. This covers you in the event that someone wanders onto the site and injures themselves or their property. You can even be liable if someone trespasses on your land and accidentally injures himself or herself. If you were to be found liable, the legal and compensation costs against you could be huge, so standard policies offer a cover of £5 million. Policy costs can range from under £100 for a clear plot of land to several hundreds for a plot with a three-storey building and outbuildings.

Employer's Liability Cover

If you're handling the project management and employment of trades yourself, you will also need this cover to protect against claims from those working on your property. You may not be employing the person but there is a 'duty of care' on your part and the injured person may be able to claim.

Income Protection

Most people will borrow money to finance their dream home but what happens if something happens to you or your partner? Income protection is just what it says on the tin. There are several options available. Critical illness cover can cover the repayments if you're unable to work. Permanent Health Insurance is more geared to how much replacement income you would need to tide you through a set period of illness or injury. This can be a few weeks or a year. Life insurance cover provides financial security to your family by paying off your self-build mortgage or any loan should you die.