How to manage your risk during a self build project

Simon Middleton, Protek’s Managing Director will be hosting a Masterclass Session on how to manage risk during your self build project at the National Homebuilding Show in Birmingham later this month. During this insightful session he will be sharing many of the unforeseen issues that regularly occur on self build, renovation and conversion project. Seeing the real live claims that occur on sites like yours, will help you understand the risks that can affect you during your project.

Friday 24th March 12:30pm Master Class Theatre

Understanding where the issues lie is essential to help you take the necessary action to protect yourself. Sadly left without protection, these problems have the potential to put enormous pressure on you and your project financially. This is why lenders insist on you having the correct cover in place.

We will explain the insurance and risk management product solutions that are available to you. We will go through the detail of how these work in your best interest to help protect you in the event of a loss, damage or injury occurring on your site. 

Free Tickets to the National Homebuilding and Renovating Show

If you would like to attend, simply click here which will open the free ticket registration page.  You can attend the session which is held in the Masterclass Theatre on Friday at 12:30PM

The difference between a self-build and new home warranty is that a self-build warranty does not have the limitation of a 2 year defect period. A defect period makes the ‘builder’ responsible for defects occurring during the first two years. Clearly if you’re the self builder then you are unlikely to have the resources to rebuild it as the ‘builder’ if there is a major defect in the first two years. This is why a self-build structural warranty policy starts from the date of completion and does not have a defects period. It gives you as the policyholder cover from day one.

This differs massively from a ‘New Home Warranty’ which is designed to be purchased by the builder who is developing homes to sell to a prospective purchaser. A New Home Warranty carries an initial 2 year defect period where the builder is responsible for anything that goes wrong during that initial period. 

Self Builders need to avoid structural warranties that have a defect period

Clearly Self Builders need to avoid this type of new home policy, because they will be classed as the builder. This means that if a defect does manifest itself during the first two years, the self-builder would be have to fix it, because the new home warranty policy would not respond.

On the basis most Structural Warranty claims occur in this initial 2 year period, it’s likely that the self-builder wouldn’t have the financial resources to cover the loss. Self-builders need to be wary of this when choosing a structural warranty provider.

One other important difference between a self-build and new home warranty is that a self-build policy is also one of the key elements required to prove exemption under the Community infrastructure Levy (CIL).

UK Authorised Insurer, Financial Services Compensation Scheme

It’s important to choose a warranty backed by an insurer who is authorised to write business in the UK. They also must be backed by the Financial Services Compensation Scheme (FSCS) as this is critical to ensuring you do not fall victim to a failed insurer. 

Warranty provider approved by lenders

Protek is approved by lenders. This means your customers will be in a good position to obtain a mortgage on the home you are selling. Unlike Professional Consultants Certificates (PCC’s) the structural warranty cover Protek provides lasts for the full 10 or 12 years. Importantly, it does not need to be topped up should the PCC become unacceptable for lending purposes or expires.

 

@ProtekSelfBuild were delighted to be back discussing site insurance & structural warranty in front of thousands of homebuilders, renovators and developers at the @HBR_Show in Harrogate at the weekend.