Self Build - Site Insurance

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Ivan

Guest
Hi,

Just wondering if anyone can offer some advice on "Course of Construction" insurance for a Self Build I will be starting in the coming months.

I was not going to get this insurance and request that all tradesmen had their own insurance but my mortgage insists that I also have "Course of Construction" insurance, regardless of whether or not the tradesmen have their own.

I have got 2 quotes - both in excess of 2K for a year which is very expensive. I'm sure lots of you have had to get this type of insurance - would be grateful if you could let me know where the cheapest options are ??
 
There was a thread on this not so long ago.

The type of cover is "contractor's all risks" and covers employer's liability, public liability and theft/damage etc.

If you are genuinely doing a turnkey build where there is a main contractor who will hand the house over to you "substantially complete" then you may be able to rely on the contractor's insurance and your standard buildings policy should kick in at that point. In this scenario you will not be able to have your own contractors in until handover (due to the issue of sharing ladders, scaffolding, etc.).

If you are doing a direct labour, shell build, etc. then you would be well advised to get this insurance. If it is a direct labour build you will also be responsible for health and safety on the site as a whole, this should be part of the policy.

It's a common misconception that you can rely on contractors having their own insurance, that will only cover them, not you.

These policies tend to run at about €1 per sq. ft. for a two year period.

You'd be wise to check this with your solicitor. Not to have it is a false economy. The level of thieving from and trespass on sites is unreal.

SSE
 
I went to the self build.ie show in Millstreet 2 weeks ago? and the salesman had a product for 24 months.

Just got his details from the pack he gave out.

Rep was Daniel Hennessey from Tipp email dhennessy@odhd,ie and the company was Hooper Dolan Insurances. www.selfbuildzone.ie

He was giving a brief spiel about 2 years cover and that it had some warranty on the build.

Can't remember what he quoted me for my build but I don't think it was as much as yours.

Mention his appearance at the show and you may get discount?

Depending on where your building, I also saw another company at the Housing Show at the Harrogate Conference Centre last week and they cover the UK and poss Ireland. If I find the info in the 3 bags of goodies I will post it.

Good luck


Charlie
 
Should have said that we got our Hibernian/Aviva policy through Fitzgerald's Insurances in Waterford City. Google is your friend!

Another thing to remember is that you generally need to get these policies in place before you start building. We got ours to start at the end of the shell build but that isn't standard practice.

SSE
 
I am not an insurance intermediary, and do not hold myself to be an expert on insurance, so let that be the grain of salt taken with the advice below
Given the role self-builders using direct labour play, self-builders should ensure that they are carrying similar insurances to a main contractor.
The below are all Allianz products, a reasonable well-respected insurer with whom I have no dealings AFAICR.

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I included Public Liability General primarily as a comparator - look at the level of exclusions!
In this post - 9/11 and post AIG-near-collapse world, its important to look at the small print of insurance contracts to see what's excluded.

I posted the links NOT to encourage people to use Allianz productsbut to show self-builders the level of EXCLUSIONS you may get in standard insurance cover.
Self-builders should therefore take professional insurance advice to ensure there is no "gap" in cover, for example, "all risks insurance" does not in fact cover all risks.

One other of insurance I came across is [broken link removed] - for when everything is done correctly by all involved yet something still occurs, often damage by vibration to an adjoining property.

In addition self-builders may need specialist insurances when dealing with

- Demolitions/ damage to adjoining properties
- Hazardous substances/pollution/waste
- Unsafe ground/ Hidden services
- Unstable adjoining buildings

Do NOT make the mistake in thinking that because a salesman offered you a single product at a favourable price point that he has correctly assessed your particular needs, because these needs/risks are dependent on experience, competence, qualifications, trades, training, site conditions and quality of site personnel.
Do NOT make the mistake in assuming that this single product covers all self-builders needs - it may do so, but self-builders are obliged to check that it does so, because if you're not covered you may find you've paid out your hard earned cash for nothing! What has happened to us that we career from accepting loans from banks that are unsustainable to buying insurance from people at trade fairs!

But dealing with risk should not just be left to insurance - avoidance of risk depends in large part on the self-builders competence as a contractor.
What happens for example when Johnny from the next town, who came highly recommend as a blocklayer by his brother whom you know from your local pub, turns out not to have a clue and you find this out when the build is at 1st floor level because a guy you took on as a labourer knows more about building in blockwork than Johnny does and tells you the problem?
These are additional issues for the inexperienced self-builder to address that an experience contractor would see straight off. Self-builders have a tendency to put their faith in people in my experience and this can sometimes be misplaced.

The above is not exhaustive advice on insurance for self-builders, which is a growing and developing market.
Competent professional advice should be sought for the self-builders particular needs taking into account constraints of the site and inexperience


ONQ.

[broken link removed]

All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal, insurance and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.
 
You should have self build insurance as it protects you from losses during any mis happening.It transfer your loss from one entity to another, regarding your payment.

Why dig this up after 3 years?
 
I noticed that after I posted a response to what I saw come up on Today's Posts, but I said I'd leave it as its as subject that seldom gets aired on AAM and it can be a bit of a minefield.