Self-build projects take a lot of time, effort, and money, but the reward of a totally customised residence is often worth it. However, it’s crucial to ensure that such a big investment has the right financial protections in place from the start – including building site insurance and a structural warranty.

If you’re not sure whether a self-build structural warranty is necessary or you don’t understand the difference between this policy and self-build site insurance, then this article is for you.

What is a Self-Build Structural Warranty?

A self-build structural warranty protects a building development during construction and for ten years after completion. The only difference from a standard structural warranty is that as the self-builder, you take out the warranty yourself rather than a developer or builder passing it on to you.

Whether you participate in the design and construction or hire contractors to handle everything, you assume the responsibilities of a developer. When you take out a self-build structural warranty, the provider will carry out regular inspections throughout the building process, ensuring that any structural problems are caught and fixed early.

After your self-build home is completed and signed off, the ten-year structural warranty kicks in from the date on the completion certificate. This ensures you won’t be out of pocket if any latent structural defects show up over the next several years. Contractors are directly responsible for the first two years, and the warranty provider handles claims for the remaining period.

A thorough structural warranty should cover defects due to poor design, workmanship, and faulty materials or components. This is different from home insurance, which you’ll need to arrange when you move into the completed property.

Why Would I Need a Self-Build Warranty?

So, why is it so important to get a self-build warranty before starting to build your own home? Here are five reasons to secure a structural warranty as early as possible in the self-build process:

1. Raising Finance: If you’re taking out a loan to fund your project, all lenders require Structural Warranty Insurance. Without it, securing financing for your build will be extremely difficult.

2. Selling Your Home: If you sell your self-build within ten years, a buyer’s mortgage lender will also require a warranty. This makes your property more attractive and easier to sell.

3. Retrospective Policies: While warranty policies can be put in place after the start of a build, they are classified as retrospective policies. Only some lenders accept a retrospective warranty policy, and your premium will be higher.

4. Holding Contractors Liable: You can’t rely solely on the contractor’s insurance, as it’s designed to protect them, not you. Your own warranty protects your investment, ensuring you aren’t left vulnerable if issues arise.

5. Peace of Mind: The last thing you want is an expensive and time-consuming legal battle if a fault occurs. A structural warranty allows you to claim repair costs without litigation, providing peace of mind.

Do I Need Self-Build Site Insurance as Well?

Whether you do the work yourself or appoint a contractor or builder to do it for you, having the right site insurance is essential. Third parties need their own insurance policies, but you can’t rely on those to protect you financially.

You should secure site insurance as soon as you purchase a plot of land for the self-build before getting your structural warranty and construction begins. As the owner and overseer of the site and project, you’ll need employers’ liability insurance to cover accidents and injuries for any workers you employ. This is the only type of site insurance that’s actually compulsory by law.

However, it’s also a good idea to have policies that cover these aspects:

• Public Liability: In case a member of the public experiences an accident or injury on your site.

• Contract Works: To cover repairs or replacements due to damage or theft.

• Tools and Equipment: Specific cover for owned or hired-in plant and other materials on your site.

You’ll need self-build insurance for your building site from the start of construction to completion, with the option to extend the cover if the project overruns. Just as most lenders require a structural warranty, they’ll also require proper self-build site insurance throughout construction. The policy must typically include:

• Listing the lender's interest as a mortgagee.

• £5 million Public Liability coverage.

• £10 million Employers Liability coverage.

• Reinstatement value.

How Can I Get a Self-Build Warranty?

While you’ll be focused on setting up self-build site insurance at the start, you should apply for a self-build structural warranty a few weeks before construction begins. This allows the warranty provider to conduct regular inspections throughout the build.

The site insurance will cover your structure, equipment, workers, and public liability until the self-build is complete. The structural warranty will then cover your new home against latent structural defects for the next ten years from completion.

Conclusion

A self-build structural warranty is essential for protecting your investment and ensuring peace of mind throughout the building process and beyond. By securing the necessary insurance and warranties early, you can focus on creating your dream home without worrying about potential financial setbacks. Our team is here to guide you through every step, ensuring that your project is protected and successful. Your dream, our expertise – together, we’ll build something extraordinary.