Six ways to Avoid one of the most costly mistakes in Self-Build
A lot can go wrong with a self-build. Unexpected legal action, fire, flooding, theft of essential machinery, injury or sickness to workers, damage to other people’s property, poor workmanship… the list can go on and on.
Worried? You should be! Because all of these things and more can quickly turn your big fat money pot of profit into a horribly expensive money pit of loss.
As any successful property investor will tell you, most of what you can gain from a self-build project is made before the first brick is even laid. Maximising your return as all about careful planning.
Thankfully, there is a lot you can do to protect your investment by taking out the right insurances before any of the work gets underway.
In building, mistakes cost money and failing to arrange the right insurance is one of the top five costliest mistakes in property development, alongside things like poor conveyancing, choosing the wrong contractor and inadequate budgeting.
Now let’s be honest – arranging insurance for a custom Self Build is not straightforward. Your needs are a lot more complicated than for someone who simply buys a home. A standard ‘household’ or ‘tradesman’s’ policy’ simply will not do.
So here is a list (with brief explanation) of Six of the important areas you may need cover for, in case things do go wrong:
1. Employers Liability
Covers you if an employee, contractor, sub contractor or anyone else you employ (directly or indirectly) gets injured during the project due to your negligence or error
2. Public Liability
Protects you if you cause damage or injury to other parties arising out of your negligence or error. For example, a member of the public straying onto your site and injuring themselves
3. Contract Works/Contractors All Risks
Covers your project in case of fire, flood and various other insurable ‘perils’. Imagine if a fire occurred two days before your project was due to complete. Who pays to start all over again?
4. Legal Expenses
Not only pays for legal expenses should things go wrong, but often provides 24 hour access to legal advice about any issue during the course of the build
5. Warranty Insurance/Latent Defects
Protects you from poor design or faulty workmanship that may become apparent several years after the project is finished. Covers you if the owner of the property sues you for repair and rectification costs
6. JCT 21.2.1 Insurance
For when damage is caused to a third party, even though you have NOT been negligent. In other words, in circumstances where Public Liability does not respond to a claim.
Which of these covers you need, and at what levels, depends entirely on the kind of Self-Build project you are embarking on and how you are tackling it.
Don’t delay. Arrange the right cover and protect yourself fully today
Self-build insurance is a specialist area requiring expert knowledge and experience. Never wait until your project is underway, before arranging cover. Talk to Titan today on 0207 731 3700 and get the precisely the right cover at the exactly the right price.