Construction insurance is also worth considering if you are an owner builder carrying out building works on your own property. While generally not compulsory, it can ensure you do not face severe financial consequences in the event that something goes wrong during the building process and you face additional costs for damage or liability from other parties. Owner builder construction insurance is often available as a package and can provide cover for:
Damage or loss of building materials. These are insured against damage from fire, storms, vandalism and also from theft. You can also take out cover for these materials while they are in transit to the construction site or while they are being stored somewhere off-site.
Damage to existing structures. You'll definitely need cover for any existing structures that are not part of your planned building project. For example, if you're building an extension onto your house, chances are that your existing house insurance policy will either be terminated or feature a range of exclusions. Owner builder insurance makes sure you are protected against damage caused to existing structures.
Damage caused by vibration. Make sure your policy doesn't exclude this sort of damage, as vibration from the work you are doing can cause damage to a neighbour's property and result in significant costs.
Public liability claims. This can cover your vacant block of land prior to construction beginning, as well as the building site once construction starts. If a worker is injured on-site or you damage someone else's property, with this type of cover in place you'll be protected.
Workers compensation claims. This ensures you are covered against any legal action taken by contractors or employees.