Do I need Self Build Insurance?
If you are planning on building your new house or extending your current property, you’ll need self build insurance. If you are getting a mortgage on the property your bank will require "Fire Cover" which is not available with a normal house insurance policy, as this is a site of construciton which is excluded with normal household. Because building a house represents a significant investment, so you need to know that you’re covered against even the worst case scenario.
Does my standard house policy cover Extension or Renovation?
Most homeowners carrying out work to their existing property assume that any works will be covered under their existing home insurance policies. In most cases it won’t be covered. In addition any substantial work that you undertake will often invalidate existing homes and contents policies. Standard house insurance may allow you to carry out a simple internal alterations and refurbishment, but any additional building work has to be notified. We would strongly recommend you to speak to your existing home insurer in the first instance and describe in detail a full extent of planned work.
Is the house not covered under my builder’s policy?
There’s no guarantee that your builder/main contractor will have insurance, you’d be surprised at just how many builders and tradespeople don’t carry any/or adequate insurance for the work they do, especially if they work ‘cash-in-hand’. People carrying out a project by using a builder with a single contract may feel that, as the builder has their own insurance policy, there is no need to go to the expense of a policy in their own name. They might be right, but they should check the details of the builder’s policy to firstly make sure that it’s up to date and secondly, that it is sufficient to cover for any eventuality.
Even if the builder has his policy Is in place you are still exposed as not everything is covered under builder’s policy and you are still required to cover materials you buy directly under your own policy. If you are getting a mortgage you will definitely need cover in your own name to satisfy your lenders' requirements.