A-Z of Self Build Guides Self Build Insurance

Date Published:

02/06/2008

You may also require these policies...

JCT Clause 21.2.1 Insurance

As well as the hazards of working on your own site, you must also think about possible damage to the surrounding area. These policies are primarily intended to cover you in the event of subsidence, soil collapse or a change in ground water levels caused by your development. Although your Public Liability insurance will cover you against negligent works, you still need a JCT policy to cover you against non-negligent damage. A good example would be deep pile foundations that were all carried out in the right way but still caused damage. It all has to be covered and a JCT (Joint Contracts Tribunal) Clause 21.2.1 policy will protect you and your builder.

The amount you will need to pay may be affected by the geology and soil type of your plot. Policy prices also vary according to building materials used and location. Because of the technical nature of the work covered, it may be best to seek advice from an engineer, surveyor or architect.

Restrictive Covenant Policy

There are fewer and fewer prime pieces of unrestricted land available. Restrictive covenants are restrictions placed on a piece of land by the previous owner. The most obvious examples are backland developments in rear gardens of existing properties. A policy should protect you from expensive legal costs if there is an existing breach of a restrictive covenant or if your development will breach the covenant but where there is unlikely to be any challenges, maybe because of the age of the original covenant. Normally you will need planning consent without objections before you can take out a policy that covers breaching an existing covenant.

Third Party Insurance

In some cases, you may also need to take out short-term insurance to cover others working on your site, for example when the mains drainage is connected up to your plot drainage system.