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Structural Indemnity Insurance/Building Guarantees:
Lenders will usually insist that some form of building guarantee is arranged on your new property to insure against latent structural defects. Typical cover will ensure that any problems that arise are remedied both during construction and then at any time up to 10 years after completion. It may be difficult to resell your new property without a building guarantee.
There are currently six types of cover against structural defects that are accepted by most self-build lenders.
• Architect’s (or other recognised professional consultants) Certificates. Issued by inspecting professionals.
• NHBC’s (National House Building Council’s) ‘Buildmark Warranty’. Issued by NHBC registered contractors only.
• NHBC’s ‘Solo for Self Build’. Contact: NHBC Solo for Self Build: 01494 73 5760.
• Zurich Municipal’s ‘Custombuild Guarantee’. Contact: Zurich 01252 522000.
• Project Builder (Liberty Syndicates). Contact: Sterling Hamilton Wright 0207 716 5000.
• Self Build Zone. Contact: 0845 230 9874.
To get a full list of what lenders require, look at the website for Council Of Mortgage Lenders and view the handbook section which details what all of the UK mortgage lenders requirements are. Section 6.6.4.6 of each of the respective mortgage lenders handbook details the requirements.
For renovations, remodelling and conversion projects, structural defect cover is available from two specialist insurers:
• Equity Red Star. Contact: Holman Insurance Brokers 0207 977 8200
• Zurich Custombuild. Contact: Zurich 0125 252 2000
Site Insurance & Liability
Site Insurance needs to be in place from the minute you purchase your plot. This will provide cover against injury to trespassers, injury or death to others resulting from construction, theft of plant or materials and damage to the property. Cover can also be arranged for caravans on site, hired plant and works to the highways.
These are essentially three types of cover provided by a standard policy:
• Public Liability Insurance
• Employer’s Liability Insurance
• Contract Works Insurance
Premiums are usually fixed for both Public and Employer’s Liability, but vary with Contract Works in relation to the anticipated total rebuild cost of the property. As a guide though, you should expect to pay in the region of £500 - £1000 for a policy to include all three types of cover. Contractors will have their own Insurance but do not rely on this as it will not cover all your needs, especially if you are using more than one contractor.
Insurance can be arranged through either your lender or a specialist self build Insurance agent. There are currently five main policies available:
• AXA underwrites a policy for Holbrook Insurance Brokers Ltd 0148 352 1650
• AXA Insurance underwrites a policy for DMS Services 0190 959 1652
• AXA underwrites Buildstore’s Buildcare policy 0800 197 5995
• CGNU underwrites a policy also through DMS Services 0190 959 1652
• CGNU underwrites a policy through Sterling Hamilton Wright 0207 716 5000 (available as part of its Project Builder Policy)
• Allianz Cornhill underwrites Buildstore’s Buildcare policy 0800 197 5995
• ACE Europe underwrites the self-builder.com policy 0800 018 7660
RENOVATION & CONVERSIONS: For renovation and conversion projects, site Insurance is available from the following Insurers. Structures cover for buildings that are unoccupied before work begins is also available:
• Project Builder (CGNU): contact Sterling Hamilton Wright 0207 716 5000
• Equity Red Star: contact Holman Insurance Brokers 0207 977 8200
• AXA (via Vulcan Insurance Brokers): contact DMS Services 0190 959 1652
• Buildcare (Allianz Cornhill & AXA): contact Buildstore 0800 197 5995
• ACE Europe underwrites the self-builder.com policy 0800 018 7660
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