All too often we come across clients who think it is a simple matter of contacting their existing home Insurers to have their policy amended and are forced into a last minute panic when they realise this is often not achievable. It is important to sort insurance in good time as most insurers will only insure the building and contract works prior to building work commencing – so you should advise your broker/insurer as soon as you know works are going to start.
In the worst cases, a lot of homeowners do not think to advise their broker or insurer they are having works done to their homes – which could invalidate their policy.
As the premiums for this type of specialist insurance are far more than a standard home insurance policy clients would rather this be factored into the costings at a much earlier stage.
Most home insurers won’t cover works if contracts exceed £ 50,000. GPS Insurance Brokers can provide specialist insurance cover for these specific circumstances.
GPS can source cover which protects the existing structure of your home, the building works being carried out, including all materials, plus your liability as owner of the property.
The insurance will last for the duration of the building project and can be extended should the works fall behind schedule, as can often happen.
What if your builder takes your deposit and/or full contract value then goes out of business? How would you pay for a new contractor to continue with building works?
A Performance Bond gives protection if your builder becomes insolvent. A performance bond is used commonly in the construction industry as a means of insuring against the risk of a contractor failing to fulfil contractual obligations to the client.
Latent defects insurance is a form of insurance taken out in respect of specific new build premises to provide cover in the event of an inherent defect in the design, workmanship or materials becoming apparent after practical completion. Cover is available to provide you with a 10 or 12 year guarantee on building works, similar to that on new build houses.
For expert advise on this and any other insurance exposures, please contact Gary Philip at GPS Insurance Brokers on 020 3907 7866