Self Build Insurance & General Advice.....

Chorlie

Hi,
I’m in the process of getting some plans drawn up for a bungalow for myself to live in (I’m not a developer). If I get planning permission, I plan to get several quotes and get a contract drawn up with my chosen builder...

Is it best if I get my own insurance to cover everything rather than relying on the builders and also since at least 2 of the builders are Sole Traders, is there any form of insurance I can take out to cover them going bust etc and the bungalow isn’t completed. I’m on a tight budget so don’t want the added expense of insurance, but the thought of having no money & no bungalow because something has happened with the builder is worrying.

Any advice on the Do’s & Don’t on building you’re own place would be greatly appreciated....I’m disabled (in a wheelchair) so can’t do any of the work myself, so will be relying on a main contractor.....😐

Thanks
Chorlie

Doozergirl

You will need a self build warranty if you or anyone else wants a mortgage on it over the next 10 years. 

Warranty providers often provide discounted building control and site insurance. 

As a contractor, we carry contract works cover which would cover the cost of a catastrophe.  It isn't a legal requirement though, so you must check.  

You protect yourself from builders going bump by doing a good amount of due diligence beforehand, checking references and probably using a FMB Registered builder as they are vetted before joining and have ongoing checks.  

You also protect yourself by having a robust payment schedule that only covers competed works (and probably bespoke items that require hefty deposits from the supplier).  We use a spreadsheet that tracks several different sub-headings of works over two weekly intervals and shows them as a % of the quote.   It means you can see the overall % competed at any point in time and also where money has gone each fortnight. 

Sole traders are personally responsible for the business finances, which means it's attached to their own personal assets.  If they are turning over enough to be building houses, I'd expect them to have a limited company to separate business from the family.  Whilst it's easier to chase a sole trader, I'd seriously question someone's experience and credentials if they were still a sole trader. 

Simples!  

You're only at the very beginning of a long journey here, so all things in time.  The planning experience is an interesting one in itself!