Self Build Insurance
Insurance for Self-Build projects
If you are building your own property or project managing a grand design, major repair, alteration or extension then you will need to consider what insurance you need for the work that is being done. JCT Insurance Expert can help you arrange the cover that you need whether you are living on site while the work is being done or the property is unoccupied, self-build insurance will help protect you.
You will need to insure the existing structure, even if you are planning on knocking it down! You will also need to consider property owners liability cover. Click here for a proposal form.
For the works themselves, you will need to insure the building as it grows. This is contract works cover and provides protection for the money you invest in the actual works themselves until they are complete and can be covered by a normal property owners policy. Click here for a proposal form
Depending on the type of work that you are doing, you might need to consider non-negligence cover. This is for damage that the work might cause by accident to neighbouring properties and would include removal of support, subsidence, alteration to the level of the water table, heave etc. Please click here for a proposal form
You may also need to consider whether you need employers liability insurance – the following guidelines may be helpful:-
In this situation the property owner or renovator is project managing where they are responsible for the day to day running of the site including all, or a combination of the following:
- CDM regulations (probably not applicable on a domestic renovation)
- Health and Safety on site
- The direction of contractors and labour
- Employment of sub-contractors
Property Owners Liability Only Required
Where the renovator is not involved in project management, but rather simply sits back and pays the bills. The renovator is still entitled to give direction as to specification (ie, I want those bricks and I want this colour), but not to instruct contractors how to do the works. The renovator hands control of the site to the main contractor, or to a professional project manager.
Property Owners Liability & Full Project Public Liability
Where the renovator is undertaking any or all of the above bullet points, either in isolation or in conjunction with a professional project manager, contractor or architect
Property Owners Liability, Full Project Public Liability & Employers Liability
Where the renovator is project managing and, in addition, directly employing labour/contractors who do not hold their own liability insurance. This is a bit of a grey area. The debate centres around whether or not the contract is one of service or employment. Insurer’s advice is that, as long as the person employed holds PL insurance of his own, then the contract is one of service rather than employment and no EL cover is required. Where EL insurance would be sensible is where persons are engaged who hold no liability insurance of their own. So, for example, if the renovator employs a sole trader to do the electrics, and that trader has a PL policy to cover his activities as a sparky, then EL is not required for that person. If, however, the renovator employs an individual who is known to be a bit handy with circuitry but does not hold any liability insurance at all (perhaps because this is not his main job), then there is a much stronger argument that this person is an employee and EL insurance would be sensible.
Forms & Fact Sheets
Proposal Form for Property and Contract works
Proposal form for Self Build Contract works
Proposal form for SelfBuild Construction Guarantee
Proposal form for unoccupied properties
Proposal form for land owners liability insurance