When might self-build insurance be needed?

It’s a simple question that doesn’t have a simple answer unfortunately. We look at cases for what insurance you might need on a case by case basis. However, the key stages of a self-build project where you might need, or must have, insurance are:

Arranging finance – If you’re going to borrow money to finance your self-build, you may need a mortgage. Before they will lend money for a self-build project, most lenders require that a structural warranty policy is in place, or will seek assurance one will be in place from the completion of build.

Buying a structural warranty policy at the start of your project can be cheaper than buying it at the end.

Looking for a plot – At this stage, you might not need specialist self-build insurance, but if you’ve purchased equipment, materials or fittings in preparation, you should make sure you have an insurance policy with sufficient cover in case of theft or damage.

Owning land – Once you’ve bought land, you have insurance liabilities.

People visiting your land, with or without permission, could be injured or killed. That’s where public liability insurance covers you. Without it, you could be liable for injuries on your site.

Owning a plot – SelfBuild site liability insurance is designed to protect your plot and your site liabilities once you’ve started the process of applying for planning permission.

The build – Once work starts, you have more of a need for self-build insurance. With builders, suppliers, materials, tools, plant and machinery all on site, there are lots to consider. The new building itself will start to have a value as well, and should be insured before completion.

Completing the build – As you move through final fix, decorating and installing appliances, you may start thinking about moving in. As the value of items within the property increases, be sure to check that everything is covered, and that limits are high enough.

Moving in – You’re finished!

Now you need to consider having buildings and contents insurance in place. Some self-build policies automatically provide a level of home insurance cover, so be sure to check before you buy.

After completion – Once finished, a structural warranty policy is designed to cover the costs of making good if the build was defective because of design, materials or workmanship. Mortgage lenders usually require this to be in place prior to lending, but it comes into effect at build completion.