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. There are many things that you should be worried about because they can quickly turn your profit into a terribly expensive 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 is all about careful planning.
Thankfully, there is a lot you can do to protect your investment by taking out the right insurances like self-build insurance before any work gets underway.
Costly mistakes
In building, mistakes cost money. Failing to arrange the right insurance is one of the top five costliest mistakes in property development. This is alongside things like poor conveyancing, choosing the wrong contractor and inadequate budgeting.
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. Keep reading to find out which important areas you may need cover for, in case things go wrong.
1. Employers Liability
This insurance 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
Should a member of the public stray onto your site and injure themselves, this cover will protect you.
3. Contract Works/Contractors All Risks
Covers your project in case of fire, floods and various other insurable ‘perils’. Imagine if a fire occurs two days before your project is due to complete. Who will pay to start all over again?
4. Legal Expenses
This cover 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.
6. JCT 21.2.1 Insurance
This insurance comes into play 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.
Ensure that you have the correct cover for your unique needs before you embark on a self-build. Contact Titan Insurance and speak to one of our experts today. Call 0207 731 3700.
