Content Writer
Mortgage Advisor & Director
Building your own home can be an incredibly rewarding experience, but it also comes with unique risks and challenges. As you begin working on your plot, you need to protect against unexpected problems like theft, fire, storm damage, or site accidents, and that’s where self-build home insurance comes in.
Here, we’ll explain how self-build home insurance works, what it covers, how insurers assess your risk, and where to find tailored quotes from providers who understand the needs and budget of a self-build project.
What is self-build home insurance?
Self-build home insurance is a type of specialist insurance policy designed to protect you and your construction while building a house. Unlike standard home insurance, which is intended for completed residential properties, self-build insurance focuses on the construction phase.
It offers protection from the day you break ground to the day when the property becomes liveable. It’s a crucial protection because most regular home or builders’ insurance policies won’t cover the unique risks of a self-build project, especially while the property is unfinished.
How does it work?
Self-build insurance is a relatively short-term policy used from the beginning of your build through to completion. You can get protection for your build site as soon as you own the land. Policies usually last from 3 to 24 months and are designed to cover the whole construction period.
If the building work goes on longer than planned, you can usually extend the policy. If you’re using contractors, they may have their own insurance, but this only covers them and not you or your home when they’re not working. Depending on the complexity of your plans, you’ll usually need a bespoke policy tailored to your needs.
What does it typically cover?
The exact details of policies will vary between insurers, but most self-build insurance in the UK will include some level of protection for:
-
Site works, tools, materials, and equipment: Policies should cover all of this (including any temporary buildings) in the event of damage from fire, weather, vandalism, or theft. This includes the overall building structure and things like pipes, power outlets, and lights.
-
Public liability insurance: This is in case someone is injured on-site and you’re held legally responsible. It can cover legal costs and compensation if there’s a serious injury (or worse), or if someone else’s property gets damaged during the construction of your self-build home.
-
Employers' liability insurance: If you’re hiring workers, even on a casual or subcontractor basis, employers’ liability covers you if someone gets injured or killed while working on your self-build site - this is a legal requirement.
-
Contract works insurance: This covers the work in progress, including the cost of repairing or replacing any partially built structures in the event of unexpected destruction or damage.
-
Legal expenses: You may get limited cover for any contract disputes or on-site issues during the self-build project. This could include any disputes between you and your builders or contractors, for example.
-
Extras: Some insurers may offer optional add-ons such as cover for temporary accommodation, personal accident cover, a structural warranty, non-negligent liability (JCT 21.2.1 insurance), site campervan insurance, hired plant and tools, accidental damage, and subsidence.
How insurers will assess your application
Self-build insurance involves a more detailed risk assessment from insurers. This will vary between providers, but here are some of the key factors that will influence your self-build insurance eligibility and premiums:
-
Type of construction: Traditional brick and mortar builds may attract lower premiums, while non-standard construction homes using less common materials or building methods (such as timber or steel frames, eco builds, modular homes, etc.) could be viewed as higher risk.
-
Self-build project details: Insurers will ask for detailed timelines, floor plans, planning permission documents, budgets for build costs, and whether you’re acting as a project manager. Whether you’re hiring subcontractors or managing a self-build team yourself will also make an impact.
-
Your cover: The estimated time until completion, the number of workers you expect to have on site, and the final rebuild value will all be important factors. Insurers may also ask for ongoing updates during the build, especially if timelines change or you modify materials or plans.
-
Location and environment: Proximity to flood zones, subsidence risk, or remote access issues may influence premium prices and availability of cover. Local crime statistics for your postcode can also make a difference due to potential security risks.
-
Your experience: Generally, insurers will feel more comfortable if you already have self-build experience (perhaps as a developer or builder) rather than it being your first time involved in a project of this scale. Having qualified professionals on board can also reduce the perceived risk for insurers.
-
Site security: Measures such as proper fencing, CCTV, locked storage, alarms, and lighting can all help reduce premiums by lowering the risk of theft or vandalism on site. Insurers will want to see that you have adequate security to prevent any obvious or preventable losses.
Average costs of self-build insurance
The cost of self-build insurance in the UK can vary significantly based on your project's size, complexity and value.
However, a good rule of thumb is that self-build insurance should cost between 0.5% and 1% of the overall build cost. So, here are some rough figures to give you an idea of estimates:
|
Self-build overall cost |
Average self-build insurance cost |
|
£150,000 |
£750 - £1,500 |
|
£200,000 |
£1,000 - £2,000 |
|
£250,000 |
£1,250 - £2,500 |
|
£300,000 |
£1,500 - £3,000 |
|
£400,000 |
£2,000 - £4,000 |
|
£500,000 |
£2,500 - £5,000 |
|
£750,000 |
£3,750 - £7,500 |
Get a bespoke self-build insurance quote comparison
Finding the right self-build insurance policy for your home can be challenging. Many mainstream insurers don’t offer this unique type of cover, and specialist providers can be difficult to compare side by side without expert support.
A brief conversation with an experienced insurance adviser means they can help create and compare bespoke quotes from the most relevant and affordable insurers. These self-build insurance quotes will be tailored to your specific needs and project, whether it’s a small eco home or a large-scale custom build.
If you’d like a free, no-obligation chat with an adviser who specialises in self-build home insurance, you can get started here:
Get bespoke advice about self-build insurance
Best UK providers for self-build insurance
The best insurance provider for your self-build project will depend on your plans, cover needs, personal circumstances, and the type of property you’re building.
To give you a few examples of mainstream options, here are some popular UK insurers that may be open to offering self-build insurance for certain properties:
-
Protek: Specialises in self-build and renovation insurance, offering comprehensive cover for contract works, public liability, and site security. Along with self-build site insurance, they also offer 10-year structural warranties, making them a practical all-in-one option for self-builders.
-
Zurich: You’ll get the option for public liability insurance worth up to £5 million, contract works cover up to £1 million, and a structural warranty covering your finished property for up to 10 years. Zurich’s self-build insurance can have flexible policy durations and the capacity to underwrite large and complex projects.
-
Aviva: Self-build insurance from Aviva is offered through insurance brokers and advisers via ‘Clear Self Build’. It can include cover for building, extending, or renovating a home. They also claim they cover a range of conversions, everything from churches and barns to water towers and ex-commercial properties.
Speaking to a specialist insurance adviser is the best way to compare realistic options and prices for your self-build home insurance policy - regardless of your location, property construction plans, or personal circumstances.
Why choose Teito for your self-build insurance needs?
Self-build projects can be complex and time-consuming - whether you’re navigating planning laws, sourcing materials, or managing budgets. Our expert advisers are here to make sure your insurance isn’t another headache to add to the list.
Our advisers specialise in self-build insurance and understand the unique risks involved in these projects. They can help you get the correct type of cover for your property, without overpaying.
Here are some more reasons why homebuilders and developers across the UK trust us to get them self-build insurance:
-
We specialise in hard-to-insure self-build properties
-
Our advisers are 5-star rated on leading review sites
-
Your first consultation is free, with no obligation to proceed
-
You’ll get access to bespoke quotes from specialist providers
Ready for a free, no-obligation chat with an adviser specialising in insurance for self-build homes? You can get started here.
FAQs
In some cases, yes. For example, if you’re carrying out a major renovation, such as stripping a property back to its frame or building a significant extension, you’ll likely need a specialist policy similar to self-build insurance.
Standard home insurance typically won’t cover a property under heavy construction, and a specific renovation policy may be more suitable. It’s always best to speak with an adviser to see what the most appropriate cover is for your renovation.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.