Blog>Trade>Benefits>What home builder insurance do you need?
Last updated: 7 January 2025
What home builder insurance do you need?
During a self-build project or renovation, a property is exposed to much greater risks. That’s why it is a good idea to have a home builder insurance policy to give you cover if you need it. Here's what you need to know.
What is home builder insurance?
When carrying out a self-build or renovation project as either a homeowner or contractor, getting the right insurance is key. Home builder insurance exists to provide cover for all of areas of your project.
In the event of an accident, having a builder insurance policy in place is absolutely essential for the property owner.
Having the right home builder insurance will ensure that cover in place for:
You (the tradesperson)
The homeowner
The contractors
The site
The property
Accidents, tool damage, and delays, all can be taken care of with minimal financial impact with home builder’s insurance.
What kind of insurance does a home builder need?
Flexibility is important as both contractors and property owners have different liabilities to cover. House builder insurance can often be a catch-all term for a range of individual policies and cover types.
So, if you work as a builder or own a construction company that works on home building, it is a good idea to consider insurance in these areas:
Employers' liability insurance – This is a legal requirement to have as an employer - it is designed to cover claims from employees for work-related injuries or illness
Public liability insurance – For a self-employed builder or construction company, this offers cover from claims by a third party for loss, injury, or damage suffered as a result of your work
Contract works insurance – This cover is for cases of accidental loss, damage, or destruction while a property is being built
Tools cover – This offers protection for your tools, equipment, and materials on site should they be damaged or stolen
Professional indemnity insurance – Helping cover costs associated with claims that work that wasn’t up to standard or that it damaged another area of the property
Income protection insurance – If you're a self-employed builder, this offers cover for periods of financial uncertainty (such as long-term sickness)
Goods in Transit insurance - This covers materials and products while they're being shipped to the site location
As you can see, there are a lot of house building insurance options for you to consider.
Feeling a bit overwhelmed with your options? Why not read our article to help you pinpoint the right insurance for your construction business.
How to pick the right tradesperson insurance
It’s worth making sure you’ve got the cover you need, as having the right tradesperson insurance will be an essential lifeline for your business if things go wrong. So, keep reading to learn everything you need to know about finding the right insurance for your trade business.
Why is home builders’ insurance so important?
Anyone who’s ever built or renovated a home knows just how expensive the process can be. In most cases, it will likely be one of the most expensive projects that someone embarks upon.
The cost of the project is high for the property owner, but it also involves outlay of costs for the tradesperson too.
This is why it’s so important to have the right home builders’ insurance. It can help protect your investment in the unlikely event that something goes wrong.
Especially if you've paid upfront for:
Materials
Licences
Tools
Fuel
Staffing costs
Without it, if there is a problem, there’s a very real chance that the home building project could come to a grinding halt before completion.
Things like this are why general builders’ insurance is so important for people in the construction trade.
Save on the cost of your building insurance
Our members get discounts on PLI with Superscript
What are the risks associated with not having your own home builders' insurance?
There are risks associated with not having home builders’ insurance, all of which could hinder your project.
You don’t want to assume that the other parties involved are insured
If an accident occurs and you don’t have the right insurance in place
You could be held financially responsible for any fallout from an accident
Without assessing all of the risks associated with a home building project, you can be lulled into a false sense of security and leave you financially reeling when things go wrong.
Therefore, it's always recommended to check, take control of, and cover your own liabilities on any personal project. That way, you can ensure that you’re protected against any eventuality.
Make sure your business is fully protected
Save 20% on public liability insurance as a Checkatrade member
How much is self-employed builder insurance?
As with all types of insurance, there are many factors that will impact the cost of your home building insurance. This in turn makes it difficult to provide a set insurance policy price.
When looking for home building insurance, remember that any and all of the following may affect your quote’s price:
The level of cover you require
The amount of work you’ll be doing
The estimated length of time for project completion
The cost of any rebuilding
The cost of the work
Whether or not you’ll be directly employing anyone
The location of your work
Previous insurance claims
There are brokers and price comparison sites to consider when it comes to finding insurance for your building business. When it comes to finding dedicated house builder insurance, it is worth shopping around and speaking to insurance companies directly.
In order to get the best price, you need to know exactly the level of cover your project requires, and insurance companies will then be able to give you an exact figure.
One thing to consider is that you could save on the cost of public liability insurance for a self-employed builder as a Checkatrade member.
Checkatrade members save 20% on public liability insurance with Superscript
The right insurance is just as essential as the tools of your trade. It can protect you and your livelihood from any incidents. It can also provide cover for your clients should anything happen while you're on site. You might be thinking that "insurance is expensive!" So, to help you get covered for
Save money on your home builder insurance as a Checkatrade member
With all these points covered, you should now have a better idea of what to consider with home builder insurance. But one way to enjoy a competitive rate on the cost of your home builder insurance is to join Checkatrade.
As a Checkatrade member, you get to enjoy exclusive member deals and discounts with our carefully selected partners. Just log in to our Member's Area to view the latest deals.
Thanks to our partners at Superscript, we are able to offer 20% off public liability insurance to our members.* You even have the flexibility to add optional extra covers too if you want.
Reasons to consider
Alongside that, there are a range of other benefits to think about too:
Over 1.3 millionsearches for building jobs through Checkatrade in 2024**
Our trades app - for jobs, quoting/invoicing, instant messaging and more
Guarantee for work booked through us (T&Cs apply)
Offers and discounts on essentials such as tools, materials and workwear
Profile page for your trade business - to highlight your reviews, photos and details
Fixed membership from Checkatrade means you can expect a certain number of leads throughout the year
Why not reach out to the Checkatrade team today to learn more about becoming a member? We're happy to chat you through about our benefits and the leads you could expect to receive.
Our fixed membership option lets you build the plan that’s perfect for you and your business needs.
Is a Checkatrade membership worth it?
One way to figure out whether the cost of something is worth it is to look at ROI (Return on Investment). In its most basic sense, this is how much something costs compared with the income it generates. Working out the ROI of a Checkatrade membership is definitely a must-do for any trade business
Home builder insurance FAQs
What happens to home builder insurance on completion of the build?
While home builder insurance provides full cover during the construction phase, upon completion, your cover will end. Your provider may offer you the choice to transfer the policy to an alternative cover.
What is structural warranty insurance?
Structural warranty insurance is a type of cover you’ll need to take out once work has been completed. This will help provide future financial protection against the work that's been done .
This is important to have for your own peace of mind if the plan is to sell the property in question. Lenders will often require a construction guarantee for up to ten years after the work is completed.
Save on the cost of your building insurance
Our members get discounts on PLI with Superscript
* As you’d expect, terms and conditions apply. Enro Ltd t/a Superscript is authorised and regulated by the Financial Conduct Authority
** Internal search data from users of the Checkatrade.com website in 2024
