Construction Insurance: What You Need to Know Before Starting Your Build
Thinking about a new build or a major renovation? Before you swing that hammer, make sure you’ve got solid construction insurance. It’s not just paperwork – it’s the safety net that keeps a project on track when accidents, water damage, or unexpected foundation issues pop up.
In the UK, many homeowners assume their regular home policy will cover a building project. That’s a risky guess. Standard homeowners insurance typically excludes any damage that happens while work is in progress. Without the right coverage, you could end up paying thousands out of pocket for repairs that should have been covered.
Why You Need Construction Insurance
Construction sites are busy places. Tools, heavy materials, and crews moving around create plenty of chances for mishaps. Construction insurance protects you from:
- Property damage: If a wall collapses or a roof leaks during the build, the policy can cover repairs.
- Third‑party liability: Accidentally injuring a visitor or a neighbour’s property? Liability coverage helps with legal costs and compensation.
- Equipment loss: Stolen or damaged tools and machinery can be a big hit to the budget.
- Delay costs: Some policies include coverage for extra rent or accommodation if the project stalls because of covered events.
One common gap is foundation repair. Articles like "Building Insurance: What’s Not Covered When It Comes to Foundation Repair" highlight that many policies leave foundation work out of scope. If you’re digging deep, ask your insurer specifically about foundation coverage.
Common Gaps and How to Fill Them
Even a good policy can have blind spots. Here’s what to watch for and how to plug the holes:
- Exclusions for water damage under the slab: Ask if broken pipes or seepage are covered. If not, consider a separate endorsement or a contractor’s warranty.
- Future settlement issues: When a new building settles, cracks can appear months later. Look for a clause that covers post‑construction settlement problems.
- Contractor’s insurance: Verify that the builder carries public liability and contractors’ all‑risk insurance. Their policy should back up yours, not replace it.
- Scope of work: Some insurers limit coverage to the original plans. If you change the design midway, update the policy to avoid a denied claim.
When you’re comparing quotes, use simple questions: Does this policy cover a broken pipe under the foundation? What’s the deductible for equipment loss? How long does the coverage last after the project ends?
Choosing the right construction insurance doesn’t have to be a headache. Start by listing the biggest risks for your specific project – whether it’s a loft conversion, a kitchen fit‑out, or a full‑scale new build. Then match those risks to policy features.
Remember, the cheapest policy isn’t always the best. A slightly higher premium that includes liability, equipment, and foundation coverage can save you thousands if something goes wrong.
Bottom line: Get a written confirmation of what’s covered, ask for an endorsement for any gaps you spot, and keep a copy of the policy on site. With the right construction insurance, you can focus on the exciting part – seeing your vision turn into reality.
