Insurance

[Willow]

We are doing our first self build financed by ourselves do we need both structural warranty and self build insurance and does any of this cover our neighbours properties, attempted to get a warranty quote but seems extremely complicated , HELP !  We don't have a main contractor as we will be using various subbies.

[nod]

We were in similar position to you

We are just completing our first self build We have a warrantee

(Protec) On our next SB we won’t bother with a building warrantee

Waste of money unless you are going to sell in the next ten years

 

You will need   Site insurance Manly for liability and to insurer the building As it takes shape 

You will be offered tools and plant within the policy But that will bump the price up

We just took out the buildings and liability 

[epsilonGreedy]

Self builder's site insurance is a near necessity particularly if you are responsible for employing people onsite, though you would not be breaking any laws in skipping it. If you hand over your site to a main builder then his insurance should cover third you.

 

Structural warranties are optional for those self financing their build without a mortgage and are now viewed more critically as people have become disappointed by:

1. The superficial level of inspection carried out by inspectors on behalf of warranty companies.
2. The fact that one such warranty provider (or intermediate agent) recently went out of business.
3. On the rare occasion the inspectors do a thorough job they can make bizarre additional demands that contradict more experienced building control inspectors.

What risks do you anticipate that will involve your neighbours beyond 3rd party public liability?

[Conor]

You'll need liability insurance if you are going to have anybody on or near your site. You could lose everything if somebody trips and falls on your site.

 

You may need insurance to cover damage against neighboring properties if there is any risk - e.g ground works caus

ingdamage, accidental plant damage, flooding etc.

[newhome]

Self build insurance is a must. 

 

You only really need the structural warranty if a. you intend to sell within 10 years as a buyer’s lender may almost certainly want one, or b. you need to get a mortgage yourself or may want to remortgage. If neither applies you may not need one. 

 

Try Buildzone for both the insurance and warranty. They’ve been in the market a long time and their warranty is widely accepted by mortgage lenders. 

 

[PeterW]

You must have insurance as your contractors liability will not cover fire, flood or other damage when they are not on site. 

 

Minimum is £2m Public Liability, build insurance should be full cost of demolition and rebuild which may be more than your budget if you are doing a lot yourself. 

 

Do not under insure ..!!! £100 saved here could cost you thousands ..!! 

[ProDave]

When my builders turned up to start work, they requested a copy of my employers liability insurance (included with my self build policy)

[Willow]

Thanks everyone that is a great help, we don't intend moving so I might give the warranty a miss as when pricing they wanted party wall documents etc, and contractors insurance which we won't have for everyone,  i will definitely be getting the site insurance but from past experience with an extension and  horrendous neighbours just wanted to make sure we are covered when the footings/'piling goes in which im not looking forward to . Our current neighbours are due to move out shortly and the sellers solicitors are asking what we are doing to safe guard neighbouring properties?  

[Bitpipe]

47 minutes ago, Willow said:

Thanks everyone that is a great help, we don't intend moving so I might give the warranty a miss as when pricing they wanted party wall documents etc, and contractors insurance which we won't have for everyone,  i will definitely be getting the site insurance but from past experience with an extension and  horrendous neighbours just wanted to make sure we are covered when the footings/'piling goes in which im not looking forward to . Our current neighbours are due to move out shortly and the sellers solicitors are asking what we are doing to safe guard neighbouring properties?  

 

Technically, a warranty is required for any mortgage related activity, even re-mortgaging.

 

In practice, they may not ask.

 

Or, like my surveyor, (when I was moving from an Ecology self build to standard residential lender) ask and accept 'yes' as an answer but not ask for any evidence.

 

The warranties themselves are practically useless  - I only got one for the lending implications.