Do I need buildings insurance on a new build property?

Whether you’re a builder or developer in the process of building houses, it’s important to consider insurance for each property.

In this video, part of our Public Liability FAQ series, we answer the question ‘Do I need buildings insurance on a new build before completion?’.

What is the difference between builders’ insurance and buildings insurance?

The first thing to note is that buildings insurance is not the same as builders’ insurance.

Builders’ insurance will include insurance products such as public liability insurance, employers’ liability insurance and insurance for your tools.

These types of insurance policies are designed to protect you if your business causes injury or damage to someone, or if an employee suffers harm as a result of working for you.

Builders’ insurance may also include insurance for your tools.

Buildings insurance is an unrelated form of insurance not aimed at builders. It covers the cost of repairing damage or rebuilding a property that may have been damaged as a result of incidents like fire or a flood. Buildings Insurance is for existing domestic buildings and is normally taken out by homeowners.

What insurance should a house builder have?

A builder or developer responsible for building a new property can benefit from having what’s known as contractors’ all risk insurance. Like buildings insurance, this will cover the cost to repair property damage caused by accidents or acts of God but applies specifically to buildings you are working on.

All-risk insurance may also cover plant, tools, and equipment, as well as employees’ tools, and hired plant.

It’s not a standard type of insurance, so you should always check exactly what is included and what period it covers. Having this cover in place until completion of the project can protect against the cost of unexpected problems onsite.

If you are not sure how long you need the insurance for, you should check with your insurance company.

What insurance should you have for a self-build home?

Self-build insurance covers you from the moment you start building right up until your new self-build home is finished. It will also convert into Home Buildings & Contents insurance once your new home is complete. Self-build insurance covers the building and includes £5,000 contents cover. You can choose cover for 3, 6, 9, 12, 18 and 24 months. You can even insure your self-build site before the building work starts.

You can check the SelfBuild Policy Summary to find out more.