Building your own house comes with all manner of financial considerations. Hidden costs can hit at any time and knock you off budget. Building costs are astronomical, not to mention any loss of earning while overseeing the project. There are also insurance costs to consider. Building a house requires a little more than a simple home insurance policy. There is a lot of danger on a building site and plenty of eventualities to cover.
When building a house, you are responsible for everything that happens on site. You are responsible for the health and safety of builders and contractors. You’re responsible for any member of the public who wanders onto your property and injures themselves. A personal injury lawsuit is the last thing you want on top of your budget. This list covers some of the essential insurance you’ll need. It includes some you may not have considered.
This is the most important one. Depending on the policy, it should cover your building site and everything on it. It covers your new building against fire, damage and flooding. It also covers any temporary structures on the site. This could be a caravan you’re living in or a workman’s portacabin. They typically cover theft but take a note of how much the coverage extends to. In some cases you may need to consider separate equipment insurance.
Site insurance will usually cover theft of equipment and tools up to a certain cost. However, the equipment stored on a building site can register well into the thousands. Theft of these vital tools and equipment can stop your build in its tracks. It will set you back time and money to replace them. A separate equipment insurance policy can help ease this difficulty. You will be required to prove the security of your building site. It is also good practice to mark all equipment with an identification pen.
Vacant Building Insurance
Once the shell of the building is up, home and building insurance doesn’t always cover any damage. If your structure is lying vacant during the build, you may need vacant building insurance. This will cover you against vandalism and the problems related to vacant buildings. This one is often overlooked and builders can come unstuck. It’s worth looking into.
When building a house, many plan to get seriously involved. Helping out with the build itself can eliminate costs. You can cut down on private contractors and expensive outsourcing. However, it comes with its own difficulties. You are risking your health and safety by getting stuck in on the building site. This is particularly true if you aren’t experienced. Check your current health and life insurance policy and make sure you are covered for this work. If not, you should add extra provisions to your current policy.
Insurance is a vital part of building your own home. Before you even start building, you should shop around for quotes. Get the best possible deals and build them into your budget well ahead of time. As we are all aware, self builds rarely stay within budget, so overestimate. Making sure you are effectively covered will eliminate surprise costs down the line.