Jake Fitness from Self-Build Zone answers some FAQs on how to choose the self-build insurance you need
WHEN DO YOU NEED TO INSURE YOUR PROJECT?
As soon as you have completed the conveyancing and bought your plot. The moment you become a landowner, you’re liable for what happens on your land.
This is the case whether you’re ready to build now, or at some future stage. Technically, this means you’ve assumed liability for everything on it. The ‘it will never happen to me approach’ won’t help you if problems occur, so it’s vital to ensure you’re protected from day one.
WILL MY CURRENT INSURANCE COVER THE NEW BUILD IF I LIVE NEXT DOOR?
This is a common misconception; don’t assume that your current household policy will cover you. If the plot is registered separately then it won’t be part of this policy. You therefore need to make sure that you have adequate insurance cover against any claims that might be brought against you.
Be thorough when checking this out: apart from the actual legal liability for accidents or other issues, you need to ensure the costs incurred in defending any actions are also covered. We live in an increasingly litigious world, and defending claims can be a lengthy and expensive process.
WHAT TYPE OF POLICY DO I NEED?
In most cases, you’ll need what is known as a landowner’s liability policy. However, circumstances vary and it’s important you check that your exact requirements are covered. Be aware that these could well change over time, and you may need to adapt the product you’ve purchased, or switch to a new, more appropriate policy.
The best way to understand how your cover needs could change is to look at a typical self-builder’s journey. There’s likely to be a delay (which could be several weeks, months or longer) whilst your scheme is drawn up and full planning permission obtained. During this time, you will need to carefully consider the potential risks on the plot. Are there any derelict buildings, walls or other structures on the site? What about lakes, ponds, dried-up wells or potentially diseased trees? All of these could present a liability risk if trespassers – particularly children – gain access to your land.
This is important even with buildings that have little or no value, such as those you intend to demolish at some point. If someone was to be injured as a result of a structure’s derelict state, then as the landowner you may be liable to compensate them.
WHAT IF I NEED TO START PREPARATORY WORKS?
Whilst you wait for your planning consent to come through, you may decide to start preparing the land to build on. Shrubs and trees may need to be cleared (being mindful of any tree preservation orders or other issues highlighted in the TA6 property information form you were presented during the sale process). You might also want to demolish any existing structures on the land using special plant and machinery.
If this is the case (or the conditions above such as derelict buildings or other features apply), you will need more than a simple landowner’s liability policy. This type of insurance typically excludes cover for work being carried out on a plot (let alone for protecting any equipment).
WHY A SITE-SPECIFIC POLICY?
When you realise that a landowner’s liability policy won’t be adequate, you will then need to consider purchasing a site-specific insurance policy (from a reputable provider backed by A-rated insurers). This will offer protection for the works, as well as covering your liability for anyone assisting on the project. It can also include any machinery, plant and equipment you purchase or hire.
PROTECTING THE BUILD
Once construction is underway, site insurance will also cover your partially built home as it progresses – together with the materials, equipment, fixtures, fittings etc. Remember that these policies are normally sold for time-limited periods (typically 12, 18 or 24 months), so it’s worth putting a reminder in your calendar to extend them if you’ve not completed the scheme within that timeframe. Some providers offer automatic alerts to advise you when your policy is about to end.
WHAT ARE SOME TOP INSURANCE TIPS FOR SELF-BUILDERS?
Don’t assume there’s no risk – and therefore no liability – just because you have an empty plot with no works underway.
Also, remember you may not need specific site insurance straight away. To determine which product is best for you, all you have to do is identify when works are likely to start, and what they’ll entail. If it’s going to take a long time before you start the build, it may be cheaper to take out landowners’ liability cover.
To conclude, remember that as you are liable for what happens on the land from the moment you become the owner, without the correct insurance cover in place you’re leaving yourself at risk of your dream home project turning into a nightmare.
Jake Fitness is team leader at Self Build Zone