Home Insurance For Self-Built Properties Explained

If you're building your own home then you'll know all about the importance of planning - and it's vital not to overlook home insurance.

Simply taking out a standard home insurance policy is rarely sufficient for self-build properties which are exposed to many unique risks. For example, what happens if there is a serious injury during the course of building the property? And would there be a payout if something were to happen to the self-builder?

These are questions that standard home insurance policies will not be able to answer. Consequently you should shop around for specialist home insurance with options such as:

- Building work and materials - Make sure you don't lose out if something happens to the structure during the building process or the materials while in-transit. To insure for these risks you'll need a 'contractors all risks' option in your home insurance policy.

- Cover for contractor/supplier disputes - If you're unhappy with the work completed or feel that the materials used are sub-standard you may wish to take legal action. A home insurance policy with cover for disputes should pay for any legal expenses should action be necessary.

- Existing structures - To insure that the lenders' interest is noted.

- Employers' liability insurance - As the owner of the self-build property you could be held liable if anyone working on the site is injured - even family and friends. By taking out home insurance with employers' liability included you will dovetail this risk.

- Further liability insurance - To protect you against injuries to third parties. This may also include personal accident cover.

- Public liability insurance - To insure you against potential claims from members of the public.

As with any form of home insurance cover you should aim to push your premiums down by keeping the property and materials secure. For example, store all the materials and equipment in a secured storage facility each night and you may earn a discount.

Several home insurance providers now offer coverage for self-build properties. You can compare home insurance from conventional providers and some specialists using a comparison website.