Home insurance while self building an extension

[23vc]

I know there are a few on here like me who are pretty much self building extensions and taking several months/years to do it, I tried to renew my contents+buildings insurance today and mentioned this, it opened a huge can of worms and is now with their underwriters to consider whether they can insure me at all. Answers to questions like "I don't have public liability insurance as I'm doing it myself" and "there's no master contract with the contractor, as I am the builder" didn't seem to go down too well lol. I also went to a specialist insurance for self builders who have quoted me, but it's 2 policies needed (1 for the actual self build = £120) plus a buildings+contents @ £450+ which is massively higher than I normally pay.
Not really sure of my next move but will phone around some more tomorrow - just wondered if others had similar experience or any advice
Cheers
John

 

[pilsbury]

Jesus. You’ve got me thinking. I’m one of those totally self building and I’ve done nothing extra house insurance wise. Didn’t cross my mind. Suppose I’m 3/4 the way through now and on target for my 1 year goal. Might just plough on and cross my fingers..... which may get burned quite badly if it all goes to rat ****.

 

[23vc]

Your name did spring to mind
I’ll let ya know the outcome, can’t be that hard as there are many of us out there doing it

 

[lostinthelight]

I didn't renew my insurance when I started work on the house because they had clauses about renovating so took the chance.
For those with a mortgage it may be wise to check with their provider to be on the safe side
litl

 

[bernardgreen]

(1 for the actual self build = £120) plus a buildings+contents @ £450+ which is massively higher than I normally pay.

The buildings and contents premium will be higher as the risks to the building and the risks of damage to and / or loss of contents are much higher when the work is being carried out. That premium doesn't seem to bad. If you do find a lower premium then look very careful at the small print for clauses like " at no time shall the building be left un-occupied " which means there has to be someone responsible in the house ( or at least on site ) 24 hours 7 days a week.

 

[pilsbury]

Your name did spring to mind

I’m sure it was in the capacity of perfect planning and preparation

 

[23vc]

That premium doesn't seem to bad.

Yeah, maybe it’s the going rate, but it’s a hell of an increase from the 190 ish I normally pay to nearly 600.
You live and learn, worth adding to a self build budget plan! (Not sure how much less it would be if I’d got a builder in to do the whole job, I guess this often doesn’t get mentioned to the insurance co at renewal time anyway)

 

[garyo]

I admit I''ve never bothered either. I can see that you'd render it invalid for theft and structural damage but in terms of flood or fire wouldn't you just be under insured to the value of the new works?

 

[bernardgreen]

Not sure how much less it would be if I’d got a builder in to do the whole job,

He ( or she ) would add the premiums for insurance to the cost of the build.

O can't recall the exact figure when we self built back in 1980 but then it was over 250 for the site alone, no cover for contents in the on site caravan we were lining in at the time.

 

[23vc]

He ( or she ) would add the premiums for insurance to the cost of the build.

The builder? My point being regardless of how well insured (or not) the builder is, the fact that the house is having work done is likely to impact the policy from the homeowner perspective

 

[23vc]

I admit I''ve never bothered either. I can see that you'd render it invalid for theft and structural damage but in terms of flood or fire wouldn't you just be under insured to the value of the new works?

It the insurance company can relate the claim to having been caused by the works, they’ll use it to avoid paying. Tesco basically told me yesterday that although I’ve still got a policy in place, it’s likely that they would not pay any claim I made until they’ve spoken to the underwriters and then may cancel the policy. I believe you can be penalised for ‘ever having been declined insurance’ so I don’t want it to get to that point, I’ll try to cancel the policy before they do

 

[^woody^]

Surely, if any building work is going on, any claim will be related to the work - in which case the builder pays if negligent or otherwise responsible, or if unrelated to the work is a normal claim against the home policy?

I could try and imagine a scenario where a claim may be related to the work but not be the responsibility of the builder, in which case the insurer may refuse to pay out, or not pay out fully if they feel there were contributing factors, but otherwise I can't see any reason to have specialist cover unless you are of a nervous disposition.

As any builder will know, there is constant (and often unfinished) work going on at their own home - and will have been for years. Do they report this? Probably not.

 

[lostinthelight]

Wasnt the op pertaining to self build, so no builder involved or have I got the wrong end of the stick?
lith

 

[23vc]

Yeah I’m self building. The issue isn’t so much around what they’d pay out in a claim, more the fact that they won’t insure it full stop - tried admiral today and they said that due to the fact that the work has now been going on for over a year, they wouldn’t offer me a policy full stop.
Since then though, I clicked another one from money supermarket and it goes all go way through to payment with none of this “call us to discuss “ desipite me specifying that building work is currently taking place, so that may be problem solved

 

[Notch7]

Yeah I’m self building. The issue isn’t so much around what they’d pay out in a claim, more the fact that they won’t insure it full stop - tried admiral today and they said that due to the fact that the work has now been going on for over a year, they wouldn’t offer me a policy full stop.
Since then though, I clicked another one from money supermarket and it goes all go way through to payment with none of this “call us to discuss “ desipite me specifying that building work is currently taking place, so that may be problem solved

Thats the danger of online quoting vs the old fashioned method of using a broker, you just dont know whether your covered or not.

I used to live in a house with a flying freehold, online quotes came out fine, until I rang up and then got the 'computer says no!' response.