Home Building Insurance

Most homeowners are advised to let their current insurance companies know of the impending home extension building works that are to be completed to their property.  This is simply to let them know of the potential increased risk so that they do not have an excuse for not paying out should your builder damage the existing property.

Most home insurers are happy with this after asking a few relevant questions that you will need to respond to.  Others may demand an added premium.  I do not think that there is a formal and separate insurance policy for the homeowner that specifically covers builder risks although many builders themselves can obtain a 'full risk' cover but it is very expensive and usually not taken out.

Home building insurance cover during the works is usually a good thing to have but most will not cover errors or omissions caused by negligence.  Therefore it is unlikely that a homeowner could claim on their own home insurance policy should the builder install defective works or materials.

All builders should carry their own third party insurance cover and many offer a higher quality of cover that insures their trades as well. All homeowners are advised to discuss this issue with their builder before engaging them & be offered a copy of their current cover when starting the works.

Remember that most building works will entail an element of flames for welding, soldering and even some roofing felt so it can be a high risk environment for your property and hundreds of extended properties are severely damaged every year by builders and contractors so you need to be sure that you are covered - preferably through your own insurers rather than relying on the builders that could be stopped without your knowledge at any time. 

NOTE - These are general discussion articles only.