Builder Insurance

Moaner101

We are about to get an extension built by a friends semi retired builder dad. I dont think he has any insurance anymore and I was wondering if I could take out an insurance on the works, I can't find any online.  Obviously regular building insurance doesn't cover it.

Any advice welcome 

Thanks

FaceHead

As a rule in life, insurance isn't worth it. 

There are specialist renovation/extension insurance's out there. The going rate is 5%-10% of the contract price, which you can find on Google. 

Has this guy messed up between 1 in 10 and 1 in 20 jobs so badly that he can't just put it right? I think this sort of insurance is an example of preying on people's nervousness as they haven't done it before, to add 10% to the cost of the job. 

Thrugelmir

FaceHead said:

As a rule in life, insurance isn't worth it. 

Until you wish you had the risks covered. 

Thrugelmir

Moaner101 said:

We are about to get an extension built by a friends semi retired builder dad. I dont think he has any insurance anymore and I was wondering if I could take out an insurance on the works, I can't find any online.  Obviously regular building insurance doesn't cover it.

Any advice welcome 

Thanks

You cannot cover a third party against potential damage or loss to property, or injury to yourselves. 

Sandtree

FaceHead said:

As a rule in life, insurance isn't worth it. 

The principle of insurance is trading the risk of a big loss (house falling down) for the certainty of a small loss (the premiums).

In principle you are correct given that 12% immediately goes to HMRC as IPT and the insurer has non-claims overheads to cover and hope to make a profit out of it all. In reality it is a touch more complex given their buying power reducing claims costs more than the average person would have to pay but still not enough to balance it out. 

You absolutely can save your premiums and hope not to be the 1:1,000 where something goes badly wrong and most the time you'll win the gamble but what do you do if you are unlucky? Most probably don't want to lose their home and have to declare themselves bankrupt to save on insurance premiums.

Section62

Moaner101 said:

We are about to get an extension built by a friends semi retired builder dad.

Are you relying on him for advice on design, planning and compliance with building regs?  Or have you got an architect doing that?

Employing a friend's dad gives scope for things to go wrong, and more difficulties than dealing with a stranger if that does happen.  Make sure all T's are crossed and I's dotted.  Don't assume he's an expert, and don't assume he'll do you any favours.

Moaner101

Section62 said:

Moaner101 said:

We are about to get an extension built by a friends semi retired builder dad.

Are you relying on him for advice on design, planning and compliance with building regs?  Or have you got an architect doing that?

Employing a friend's dad gives scope for things to go wrong, and more difficulties than dealing with a stranger if that does happen.  Make sure all T's are crossed and I's dotted.  Don't assume he's an expert, and don't assume he'll do you any favours.

No, we have an architect and structural engineer.  I agree with the more difficulties part, but his price is really good and I know he's good. I'm not banking on any favours, but I know he won't avoid problems or leave something that appears later. 

I've since learnt that his new 'partner' has insurance

Thanks

Anonymously

Be careful about your house insurance too. Policy Expert have just told us our policy is cancelled because we are going to do a two story extension "Outside the scope of their insurance" But particularly take care with Policy Expert they may be the cheapest but they know how to drop you into the brown stuff very well.