If you're dabbling with your own grand design, it's best to be protected for all eventualities. When building your own home, self-build insurance covers your project from buying the land until completion of the property.
What is self-build insurance?
Self-build insurance - otherwise known as self-build site insurance - is specialist cover you take out when you buy a plot and build a new home from scratch. This protects you against a range of things, including damage to tools, materials, equipment or the building itself.
It can also protect you if anyone is injured or killed onsite, whether they’re contracted to be there or third parties.
We don’t offer or compare this kind of insurance - for that you’ll have to go to a specialist insurer. But once the project is finished, we can help you with your home insurance requirements for your shiny new pad.
How does self-build home insurance work?
Self-build insurance protects you while your home is still under construction. This covers you for the risks involved in building a property. For example, it can cover things like:
- Damage, loss or theft of materials or equipment
- Injury to you, construction workers or third parties
- Damage to the building itself
There are also usually optional extras you can add, to fully tailor the policy to the needs of your project. Again, it’s worth noting that most regular home insurance providers don’t offer this, so you’ll need to go to a specialist self-build insurer.
When should I take out self-build insurance?
Usually it’s recommended to take out self-build insurance as soon as you’ve bought the plot of land. Even before work begins, this means you’re protected against liability.
Policies can last from anything from 3 to 24 months, covering the whole build process. Policies of 6, 9, 12 and 18 months are also standard - but it’s worth noting that policies can be extended, as projects can often be delayed. Extending cover normally comes at an extra cost.
What happens after it’s built?
When the project is complete, some construction companies will provide structural warranties of 10 years. At an extra cost, these protect you against design and building defects - similar to a National House Building Council (NHBC) warranty from a new-build developer.
You may also be offered buildings and contents insurance from the developer. Be aware that this is optional, and cover may be limited - for example the value of the content may be capped. This is why it’s a good idea to shop around and compare buildings insurance and contents insurance from a range of providers.
Do I need self-build insurance?
Building your own home is a big project, so you should certainly consider getting insurance for it. And if you’re getting a mortgage or other finance for the build, it’s likely that the lender will insist you have insurance in place.
There are also several risks to consider. There will be numerous people working onsite, expensive materials, and it’s not possible to eliminate the risk of injury or damage. Plus, building sites can be a target for thieves, due to the presence of tools, machinery, and materials.
It’s worth noting that your contractors will ideally have their own insurance for their tools and machinery. It’s a good idea to check this. But if you hire any equipment yourself, you’re likely to be liable to replace it. Plus, if any contractors are injured onsite, it’s best to be covered for this - especially if a dispute arises as to where the fault lies.
How can I buy self-build insurance?
We don’t compare self-build insurance, and many standard home insurance providers don’t offer it. This is because it’s complicated, and involves numerous risks.
In order to buy self-build site insurance, you’ll have to go to a specialist provider. These can be found online, or you could get recommendations from your contractor or architect, or even your local council. Always check reviews and make sure they’re a trusted company before you commit.
Do I need self-build cover for an extension?
Self-build insurance is usually for entire home builds, rather than projects such as adding an extension to your home.
Extensions can usually be covered by your home insurance. If you already have insurance in place, you should tell your provider that work is being undertaken, so it can adjust your cover accordingly. This may involve needing to pay extra. And if you’re applying for home insurance, be sure to mention if any building works are happening at your home.
Be sure you do mention this, though. Not telling your insurer that work is being undertaken could mean you’re not covered for certain eventualities, or even invalidate your policy.
If you’re unsure as to exactly what renovation insurance cover you need, ask your insurer. It can advise you on exactly what’s already covered, and what additional protection you may need. This is likely to vary depending on the scale of the project.
Is it needed for a new build?
No. If your home is being built by a developer, you won’t need to worry about cover until it’s finished and you’re about to move in. At this point, you can take out standard home insurance.
What’s covered with self-build insurance?
Self-build insurance is wide-ranging, and should cover things that could go wrong during the build. A good self-build policy should cover the following:
- Employer’s liability insurance. This is a legal requirement. It protects you against any claims made by contractors working on your site, such as if anybody is injured or killed.
- Public liability insurance. This covers you if you’re sued by a member of the public - for example, if they’re injured due to your building works.
- Cover for contract works. If the structure of your building is damaged or destroyed, this protects you against the cost of replacement and repairs.
- Legal expenses cover. This covers you in the event that you’re involved in legal disputes, such as contractual disputes with tradespeople involved in the project. This type of cover is often an optional extra.
- Theft from site. Unfortunately, building sites are often targets for thieves, on account of the expensive tools, equipment, and materials. Your self-build policy should cover you for this.
What’s not covered with self-build insurance?
As with all insurance, it’s important to familiarise yourself with your policy so you know what you’re covered for. And - crucially - what you’re not covered for. Typically, self-build insurance policies won’t cover the following:
- Existing damage. Insurance never covers problems that existed before the policy was taken out.
- Wear and tear. You’re usually covered for sudden events, but not gradual weathering or wear and tear.
- Pest infestation. Infestations of pests or vermin, such as rats, mice, hornets, or wasps isn’t covered.
- Deliberate damage by you or workers. While vandalism is usually covered, deliberate damage by you, your family or contractors is not.
- Electrical or mechanical failure of vehicles or machinery. Repair or replacement will usually be the responsibility of the owner.
- Faulty workmanship or defective design. Find out more about how to deal with shoddy workmanship.
- Theft of machinery, vehicles, or items that weren’t locked away or secure. You should take reasonable care to keep your site and items on it secure.
"The home insurers we work with don’t offer self-build insurance. Because of the increased risk, many insurers don’t see it as a viable option commercially. Or would rather not take the risk by offering it as it’s not in their area of expertise.
"We can help you get cover if you’re renovating or extending though. If you’re already insured, contact your existing insurer to let them know you’re doing work.
"Once you’ve built your dream home, don’t forget to compare prices for buildings and contents to keep your new home protected from damage and theft."
What our home & lifestyle insurance expert says
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