What Home Builder Insurance Do You Need? | Checkatrade
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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 a home builder insurance policy is recommended to ensure all facets of your business are adequately protected. Here’s what you need to know about getting this sort of insurance.

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. Without it, you won’t be able to protect all areas of your project in the event of an accident.

Home builder insurance, in particular, is absolutely essential for the property owner in these sorts of scenarios. As having the right home builder insurance will ensure you, the contractors, the site, and the property are properly covered.

Accidents, tool damage, and delays, all can be taken care of with minimal financial impact with home builder’s insurance.

home build in progress

What kind of insurance does a home builder need?

As you may have guessed, home builder insurance is quite a vague term, one that covers several insurance areas.

However, this flexibility is important as both contractors and property owners have different liabilities to cover.

So, to make sure home builder insurance covers all areas.

You chould consider taking out all of the below insurance:

  • Employers’ liability insurance – this type of insurance will financially protect your employees should they suffer an accident while working and is a legal requirement to have as an employer. If instead, you’re working with subcontractors or labourers on site, then it’s your responsibility to make sure they are insured
  • Public liability insurance – this type of insurance covers the cost of a claim by a third party for loss, injury, or damage suffered as a result of your work
  • Contract works insurance – this type of insurance will help to cover the cost of repairing or replacing damage to any work already completed on your project
  • Contractors All Risk Insurance – this insurance will protect a property that’s exposed to the elements against loss or damage due to wind, rain, storms, and flooding
  • Tools cover – this type of insurance will protect your tools, equipment, and materials on site should they be damaged or stolen
  • Professional indemnity insurance – this type of insurance will cover any financial costs associated with a third party claiming your work wasn’t up to standard or that it damaged another area of the property
  • Legal expenses cover – this type of insurance will help cover the cost of a claim or a dispute made against you as a result of problems caused by your project

As you can see, there are a lot of insurance options out there for you to consider.

That’s why we recommend reading our piece on choosing your business insurance for further help in this area.

Make sure your business is fully protected with the right insurance

And save 20% on PLI as a Checkatrade member

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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 you ever embark upon.

This is why it’s so important to have the right home builders’ insurance so you can protect your investment. Without it, there’s a very real chance that your project could be brought to a grinding halt before completion.

Things like this are why general builders’ insurance is so important for people in the construction trade.

On top of this, lenders will also be likely to be reluctant to release funds without seeing proof of insurance. Thus, you ideally need to have the relevant builders’ risk insurance for renovations and self-builds before you begin.

checkatrade builders onsite

What are the risks associated with not having your own home builders’ insurance?

There are many risks associated with not having home builders’ insurance, all of which can hinder your project.

For one thing, you don’t want to assume that the other parties involved are automatically insured. Doing this can lull you into a false sense of security and leave you financially reeling when things go wrong.

Alongside this, if any accident occurs and you don’t have the right insurance in place, you will be held financially responsible for what follows.

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.

Save on your business insurance and enjoy a range of other benefits too

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How much is self-build 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

Make sure your business is fully protected with the right insurance

And save 20% on PLI as a Checkatrade member

Join to save

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 guarantee a competitive rate on the cost of your home builder insurance is to join Checkatrade.

As a Checkatrade member, you get more than just a listing in the UK’s leading trade directory. You’ll also get to enjoy exclusive member deals and discounts with our carefully selected partners.

This includes 20% off public liability insurance. Just log in to our Member’s Area to claim the latest deals today. You even have the flexibility to add optional extra covers too if you want.

Why not reach out to the Checkatrade team today to learn more about becoming a member? And don’t forget to look at our trades blog for similar articles. We have pieces on both scaffolding insurance and advice on building near trees.

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.

However, your provider will normally offer you the choice to transfer the policy to a standard home insurance deal instead.

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 provide financial protection against the work that’s been done for several years.

This is important to have for your own peace of mind if you plan to sell the property in question. Lenders require a construction guarantee for up to ten years after the work is completed.

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