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Email: simon.middleton@self-builder.com

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View Self-builder Site Insurance Brochure.pdf

Protect your dream home with insurance and risk management

By Tim Brangwyn, Director, Self-Builder.com 

Self-builders can be forgiven for putting insurance and risk management issues near the bottom of their priority list.  After all, theres land to secure, planning permission to obtain, architects to find and materials to source. 

However, anything that puts stress on a self-build timeframe or budget an accident that incapacitates the self-builder, a serious injury on site that requires investigation, flood, fire etc can have a catastrophic impact.  By putting in place the following insurance and risk management controls, you can help protect against that stress;

1.  As soon as the land/site is purchased, buy Public Liability insurance.  A site owner needs to protect against potential claims from members of the public.   Public Liability insurance covers your legal liability for injury or damage, however, dont rely purely on insurance.  Steps should be taken to prevent/discourage access, taking account of obvious hazards, for example is the land close to schools/public areas? 

2.  Insure existing structures.  As well as protecting the owners interests, lenders require such insurance it ensures that their interest is noted. As with land, protect the property against unauthorised access, for example from squatters or children, and drain/isolate any mains services.

3.  Next comes the actual building work and associated materials.  A Contractors All Risk policy (CAR) insures the structure from the first footings to final completion.  This is a comprehensive policy so dont accept exclusions such as storms these are the very things a lender will want cover against.  The CAR policy also provides cover for on-site materials and in transit to/from and can be extended to insure any owned plant and tools. Additionally, specialist self-build policies provide cover for existing structures and caravans/site huts.

When hiring plant, equipment or tools, check the hiring terms. Hirers may be required to insure the item, as well as making provision for ongoing hire charges, should it be lost or damaged.  This can be added to the CAR policy at little cost.

4.  If using sub-contractors, Employers Liability insurance is needed to dovetail with Public Liability cover. Where engaging a firm with its own people, management and equipment, Employers Liability may not be required. Injury to self-employed persons, friends or volunteers could present an action against the site owner as an employer. The situation is far from clear so take a prudent approach if in doubt insure against it!

5.  Liability insurances protect any legal liability for injury to third parties or employees but they do not insure accidents to the site owner(s).  Incapacitation can affect budgets and timescales protect against this with Personal Accident cover, it will provide some flexibility.

6.  Contractor/supplier disputes.  If work or materials are sub-standard and the site owner is in dispute with the contractor, Legal Expenses cover can help speed things up, protecting that all-important budget.  Many policies also provide cover for squatter evictions and other legal problems.

7.  Contract sites are dangerous and a duty of care is owed to all those on or around it.  Children often see them as playgrounds and adequate fencing, signs and security are essential. Insurance only responds to an actual claim - preventing an accident is vital.  Aside from the moral and human dimensions, a serious incident could threaten a project through the risk of prosecution, additional interest charges or other costs resulting from delayed completion.

A self-builder must consider safe systems of working and apply them to all hazardous operations, for example:

      Frame erection

      Working at height roofing, cladding and painting

      Working with heat blowtorches, bitumen, welding equipment etc

      Scaffolding

      The risk of asbestos

      Excavations

Effective risk management is about identifying the hazard, assessing the risk, reducing it to an acceptable level and putting in place protective measures.    Once this has been done, record your actions, detailing:

      Who is in charge of operations

      The safe means of access to and from all work areas

      Any lifting appliances (including their on-site position and gear to be used)

      Storage of materials and methods of dealing with hazardous substances

      How the work is to be carried out

      Communications

      Equipment to be used

      Protective clothing and equipment to be worn 

Sourcing the right insurance package and assessing risks shouldnt be considered a chore involving red tape and jargon.  Its a vital part of the planning process which can be easily addressed by contacting a self-build insurance and risk management expert.  Any reputable self-build broker can advise on on-site risk management and provide a policy that not only protects the project and project manager against any incidents, but satisfies lenders requirements.