It is not a legal requirement to take out self-build insurance, or warranty cover for that matter, but it’s likely that your lender will require that you at least have insurance.
House insurance is designed for those living in a house and therefore does not cover major building work, although it will cover cosmetic upgrades. So if you are carrying out a major renovation project or adding an extension, you’ll need to adjust your insurance cover to include public liability and employer’s liability.
It is well worth sussing out your options well in advance. Warranty and insurance providers can be tricky about accepting projects with unusual features or build styles and even a small flat roof area can result in a rejection.
Some providers may deny applications based on your build being ‘non-standard’. Be prepared to supply information on the build including certificates and warranties for products you intend to use.
Self-build insurance is a comprehensive bundle of insurance products that will cover your costs in the event of a claim related to your project. It will protect you from the unforeseens and the many risks associated with construction activity, including trespassers getting injured and filing a claim against you, or the theft of tools or sanitaryware waiting to be installed.
A structural warranty will see the warranty provider undertake an assessment of the construction drawings followed by a schedule of inspections throughout the build. When required as part of your mortgage, the stage payments will be released when the inspector signs off.
You can take out a standard 10 year warranty from a specialised company or go through a building professional who’s also a certifier as they may offer the warranty service, backed up by their professional indemnity insurance, which may be enough for your lender.
A comprehensive structural warranty policy will provide peace of mind and make the sale of the home easier in the future. It also provides a wide range of services and expertise should something go wrong.
