Self build insurance is undoubtedly a very big investment, however, this type of insurance is unlike other insurance policies; it is not always a necessity and it is definitely not compulsory. Although the decision relies totally on your perspective of how you wish to proceed with your project, it is undeniable that insurance cover should be given considerable thought to as the risks engaged to self build projects are not menial ones. Such risks would not only be costly but unhealthy for your reputation amongst other serious factors, which may cause unwelcome disadvantages. For instance, if your employee is involved in an accident, you can easily be protected from claims made against you that would affect you directly.
In one nutshell self build insurance will act as a cover to protect you and your sub-contractors for any unanticipated complications. However, to have a clearer view on: what the insurance policy does, protects you – the employer – against, how much cover may be required and other most frequently asked questions are broken down.
Insurance Policy Cover
• Protects you from theft of: plant and tools, materials
• To any injury
• From any malevolent damage or injuries to sub-contractors
• Protection against damage caused from storms, floods or fire, and also against any accidental damage that sub-contractors may do to neighbours’ property – for instance – water mains or the like
• There is also a possibility of gaining protection for yourself against claims from trespassers wandering onto your site who may injure themselves in the process
If a sub-contractor was seriously hurt on site, would the policy cover you?
• Protects your employees against any injury while working on site, however you may not be covered
• This could also extend to anyone visiting the site if you have ‘public liability’ cover as part of your self build insurance
How much cover will you be able to get and how much you will need
• How much cover you get will depend on you; it is sensible to bear in mind the pendulum balance over not over insuring or under insuring
• Risks should not be underestimated because if you do need to make a big claim, the assessors will only reduce the claim made accordingly
• In reference to ‘premiums’ – these would be based on rebuilding costs of the new property. This figure will not include the cost of land, but it would be based on what the builder would charge in order to reinstate the building if a disaster should occur before you are about to move in
• Using builders or sub-contractors can allow you to take out a basic cover for Public Liability and Employers Liability and Contracts Works. You would not be expected to have cover for their plant or equipment, since they should automatically have their own
How mush does it cost
• For a Full Self Build insurance policy: can give cover up to two years and should cost approximately 0.5 per cent of the total building costs