Self-Build Insurance Guide
A self-build site is an uninsured risk from the moment you own the land. Get the right policies in place before anyone sets foot on site.
A self-build site is an uninsured risk from the moment you own the land. Get the right policies in place before anyone sets foot on site.
A standard home insurance policy does not cover a property under construction. From the moment you own a plot, you have a liability as a landowner - for injuries to visitors, for damage to neighbouring properties, and for the value of any materials and work in progress on site. None of this is covered by your existing home insurance.
Self-build insurance is a specialist product combining several coverages that a domestic homeowner would not normally need. Get it in place before the first contractor arrives on site - ideally as soon as you complete the purchase of the land.
This is the core policy for a self-build. It covers the value of the works in progress - materials on site, the partially constructed building, and temporary works - against theft, fire, storm, flood, and accidental damage. If a fire destroys the frame after it has been erected, contract works insurance pays to rebuild it.
The sum insured should reflect the full reinstatement value of the completed building, not just the cost of work done to date. Increase it as the build value grows.
Public liability covers your legal liability if a third party (a visitor, a neighbour, a passer-by) is injured or their property is damaged as a result of your construction activities. Minimum £2 million cover is standard; £5 million is advisable for any project near neighbouring properties.
This covers you as the self-builder and project manager. Your main contractor should carry their own public liability insurance, but you need your own policy as well - their policy covers their employees and their activities, not yours.
If you directly employ anyone on your self-build - even temporarily, even cash in hand - you are legally required to hold employer's liability insurance with a minimum of £5 million cover. Failure to hold it is a criminal offence.
This applies even if you consider them self-employed. HMRC's employment status tests are stricter than most people expect. If in doubt, cover is included in most self-build insurance packages.
A structural warranty (also called a latent defects warranty) is a 10-year insurance policy that covers structural defects in the building after construction is complete. Most self-build mortgage lenders require one - without it, your property will be difficult to sell and impossible to mortgage through a mainstream lender.
The main providers are NHBC (Buildmark), LABC Warranty, Premier Guarantee, and Checkmate. Each has its own inspection process during construction - you must register with the provider before work starts, not after. Inspectors from the warranty provider will visit at key stages alongside Building Control.
Structural warranty costs are typically 1-1.5% of build cost for a standard new home.
Optional but recommended. Covers legal costs arising from disputes with contractors, planning appeals, and boundary disputes. Particularly useful if you are managing trades directly and risk disputes over payment or workmanship.
Self-build insurance is a specialist market. Mainstream insurers do not offer it. The main providers include:
Get at least two or three quotes and compare the excesses and exclusions carefully - the cheapest policy is not always the best when you need to claim.
Your main contractor will carry their own public liability and employer's liability insurance. These cover their employees and their activities. They do not cover:
Always ask your contractor for a copy of their insurance certificate before they start work. Check the policy limits and expiry date - not the broker's covering letter, the actual certificate.
Insurance tasks are covered in Stages 1, 4, and 6 of your project checklist. Open your checklist