So, what cover is required, and when should these be arranged? Let’s find out!
Generally speaking, a Self-builder should consider arranging site insurance, structural warranty and legal expenses when embarking on a project. It’s important to bear in mind that every project is slightly different, which is why discussing your project with an expert is fundamental.
SITE INSURANCE
The site insurance usually needs to be in place from the exchange of contracts. If the plot is part of your garden, then arrange it when you split the deeds, or as works are about to begin.
Site Insurance needs to run for the duration of the project and cover all works in progress, materials, plant tools and equipment – as well as any residential caravans and the contents therein. It could also include cover for public liability, employers’ liability, personal possessions, and personal accidents.
The policy is based on the professional reinstatement cost of the new works element and must be enough to cover the total rebuild upon completion. Where the project involves an existing structure that’s being converted, the rebuild cost for the retained element will also need to be included in the site insurance policy.
Without site insurance in place, a Self-builder is unlikely to financially recover sufficiently to be in a position to rebuild a project destroyed by a serious loss, such as a fire.
STRUCTURAL WARRANTY
A structural warranty covers defects in the design, workmanship, materials and components of the housing unit and protects the homeowner in the event the property suffers physical damage, or the risk of physical damage. It runs for 10 years from the date of completion, but has to be arranged well before the works on site commence.
This is because the warranty provider’s technical auditor must carry out a design check before inspecting the works during construction. A typical Protek warranty, for example, can be provided to include the building control.
This reduces the number of inspectors on site, making it an efficient proposition. A structural warranty protects the future homeowner against risks that are simply not covered elsewhere and will be a requirement of most lenders.
PART WALL LIABILITY
If you are proposing to carry out work within 3 or 6 metres of a party or boundary wall, you will invariably have to consider your liability under the Party Wall Act 1996.
Under the terms of the Act, your neighbour has a right to be compensated for any loss or damage caused by your relevant works.
So, should you cause damage to the neighbouring property inadvertently, public liability does not provide protection as it is a foreseeable loss.
However, cover for your contractual liability can be included under Site Insurance as an option on any project where you have evidence of a party wall agreement in place.
We’d like to thank Simon and Protek for their time and contribution to this blog. If you would like any help, or more information regarding Site Insurance, Party Wall Liability, Structural Warranties, or Legal expenses, get in touch with Protek Self-Build Insurance via their website!