The tricky part is getting the right sort of insurance. Many people carrying out a Self-build or renovation project believe that their builders and contractor will have insurance to cover the project or that a home insurance policy will cover a property that is undergoing a renovation. This simply isn’t the case.
Don’t just think that any old insurance company can give you cover either – they really can’t and in most cases, haven’t got a clue what you really need anyway. There are only a handful of suppliers able to provide you with the advice you need and the product that you are looking for.
So, let’s clear up some myths.
“My Contractor has Public Liability insurance, so I’m covered” – No you’re not. Public Liability covers the contractor or tradesmen against his liability to you for a negligent act error or omission and you must prove their negligence. What it doesn’t cover is your property that is damaged by accident, a fire, flood, storm, etc. or any of your property that is stolen from your site. You will have no cover if you cause an injury to someone or damage a neighbour’s property.
“My contractor has Contractors All Risks Cover, so I’m covered” – Possibly. So long as the contractor has a valid ‘Contractors All Risks’ insurance policy, with a limit that meets or exceeds the full rebuilding cost of the project, there is a written contract between both parties stating that they are responsible for the whole project to the point of handing you the keys to a completed property, you should be OK. However, if that contractor is building the shell and you are taking over from there, you will have no cover when they have left the site.
Conversions, Renovation or Extension all involve an element of Existing Structure that needs to be correctly insured. For example, the house that’s being extended, the barn prior to conversion works and so on. It’s important that the existing bit gets correctly insured and this is especially true where an extension or remodelling project is concerned. The misconception is that your home insurance covers the extension works during construction – in fact most home policies exclude alteration and renovation as standard. If you advise your home insurer they may offer you some cover but only on a named perils Fire, Lightning, storm etc. basis so a collapse while knocking through won’t be covered. Read more ›